Fredericks Limited Acquired the Identifiable Assets,liabilities and Contingent Liabilities of Nicole
Multiple Choice
Fredericks Limited acquired the identifiable assets,liabilities and contingent liabilities of Nicole Limited for $134 000.The items acquired,stated at fair value,are: Plant $72 000 Inventory $40 000 Accounts receivable $18 000 Patents $10 000 Accounts payable $16 000.The difference on acquisition is:
A) Gain on bargain purchase $10 000
B) Gain on bargain purchase $16 000
C) Goodwill of $10 000
D) Goodwill of $124 000.
Correct Answer:
Verified
Correct Answer:
Verified
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