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Plant and Machinery

190000

Motor Vehicle

170000
Stock 60000

Current Liabilities

50000

Purchase consideration

40000

The goodwill is?

A.

₦110,000

B.

₦30,000

C.

₦90,000

D.

₦80,000

Correct answer is B

Goodwill = Purchase consideration - value of assets
Total value of assets = 190,000 + 170,000 + 60,000 - (50,000)
= 370,000

Therefore, Goodwill = 400,000 - 370,000
= ₦30,000



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