Reference no: EM132968760

Problem 1: Core goodwill consists of:

Select one:

Option 1: current goodwill and future goodwill

Option 2: present goodwill and future goodwill

Option 3: going concern goodwill and combination goodwill

Option 4: current goodwill and non-current goodwill

Problem 2: Insects Limited acquired the identifiable assets, liabilities and contingent liabilities of Fly Limited for $300000. The items acquired, stated at fair value, are: plant $104 000; inventory $25 000; accounts receivable $75 000; patents $31 000; and accounts payable $42 000. The difference on acquisition is:

Select one:

Option 1: gain on bargain purchase $107 000

Option 2: goodwill of $65 000

Option 3: goodwill of $107 000

Option 4: gain on bargain purchase $300 000