Gargantua Ltd Paid $1 000 000 for 75 Per Cent

Multiple Choice

Gargantua Ltd paid $1 000 000 for 75 per cent of the voting shares of Dwarf Ltd,and evaluated Dwarf's assets to be worth $1 500 000 and its liabilities $300 000.What was the goodwill on consolidation at the date of acquisition?

A) $100 000
B) $200 000
C) $300 000
D) None of the answers provided