ABC Paid $1 Million for a Business and Acquired the Following

Multiple Choice

ABC paid $1 million for a business and acquired the following assets and liabilities:

Which of these entries would be made for goodwill?

A) Dr Goodwill $50 000
B) Dr Goodwill $950 000
C) Cr Goodwill $200 000
D) Goodwill is not entered in the accounts until the business is sold.