alleryStart learning →Rs 8,00,000 buys 40% of an associate with net assets of Rs 15,00,000. What is the goodwill?
ARs 1,00,000
BRs 3,00,000
CRs 2,00,000
DRs 8,00,000
Answer & Solution
Correct answer: C. Rs 2,00,000
The 40% share of net assets is Rs 6,00,000, so cost of Rs 8,00,000 exceeds it by Rs 2,00,000 of goodwill.
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