A company acquires a business for ₹300 crores. The identifiable net assets (assets minus liabilities) of the acquired business are valued at ₹200 crores. What goodwill arises from this transaction?
Answer
₹100 crores
The correct answer is ₹100 crores — Goodwill = ₹100 crores
Step-by-step solution
- Goodwill = Purchase price – Fair value of identifiable net assets
- Goodwill = ₹300 crores – ₹200 crores
- Goodwill = ₹100 crores
Common mistake: Forgetting to subtract liabilities
Concept tested: Goodwill calculation
Published · How this solution was prepared and checked
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