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Sun Limited bought the business of Moon Limited for $600,000. Two-thirds was paid immediately and the balance was to be paid in two years later.

Sun Limited bought the business of Moon Limited for $600,000. Two-thirds was paid immediately and the balance was to be paid in two years later. The relevant discount rate is 12%.

The assets taken over by the company had a fair value of $700,000 and the liabilties taken over had a fair value of $250,000.

The goodwill acquired by Sun Limited is?

Select one:

a.Positive Goodwill $109,439

b.Positive goodwill of $150,000

c.Negative Goodwill $50,000

d.Negative Goodwill of $150,000

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