How to calculate the goodwill

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Question - On 1 December 2018, A Bhd sold its 80% holding in B Bhd for a consideration of $250,000. The sale price was settled in cash. On that date, the net assets of B Bhd were as follows:

Cash & Bank 80,000

Fixed Assets 300,000

Finished Goods Stocks 35,000

Trade Debtors 50,000

Trade Creditors (20,000)

Required - How to calculate the goodwill?

Reference no: EM132736582

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