Use the following information to answer the question below
Mr. White acquired Mr. Black’s business for GH¢ 410,000. The total assets were GH¢ 670,000 and liabilities amounted to GH¢ 320,000.
A. GH¢ 350,000
B. GH¢ 260,000
C. GH¢ 90,000
D. GH¢ 60,000
Correct Answer: Option D
D. GH¢ 60,000
Explanation
Assets 670,000 – liabilities 320,000 = 350,000 (business value after liabilities claims)
Purchase price 410,000 – 350,000 business value = 60,000 goodwill
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