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NPlant and Machinery190000Motor Vehicle170000Stock60000Current Liabilities50000Purchase consideration400000

Determine the amount of goodwill

A.

₦110,000

B.

₦80,000

C.

₦90,000

D.

₦30,000

Correct answer is D

AssetsNPlant and Machinery190000Motor Vehicle170000Stock60000420,000Less Liabilities50000Value / Net worth of the business370,000

Purchase Consideration less worth of the business
400,000 - N 370,000

= N30,000

Goodwill is an asset that can not be seen or touched. It is referred to as intangible asset.
Goodwill is generated as may be the good name ot the business, confident of the customers an the product of the business. It is quantifiable by the management an monetary terms.