Sun Limited bought the business of Moon Limited for $600,000. Two-thirds was paid immediately and the balance
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Question:
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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