Multiple Choice
Fredericks Limited acquired the identifiable assets and liabilities of Nicole Limited for €134 000. The items acquired, stated at fair value, are:
• Plant €72 000
• Inventory €40 000
• Trade receivables €18 000
• Patents €10 000
• Trade payables €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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