alleryStart learning →A company buys shares worth $40,000 for $60,000. What goodwill arises?
A$100,000
B$40,000
C$20,000
D$60,000
Answer & Solution
Correct answer: C. $20,000
Goodwill is the price paid of 60,000 less the 40,000 worth acquired, which is 20,000.
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