Answer: The Goodwill is $7,000,000
Explanation:
$
Purchase price. 38,000,000
Less:
Fair value of asset 48,000,000
Less: Fair value of liabilities 17,000,000
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Fair value of net Asset. 31,000,000
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Goodwill. 7,000,000
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Workings
Fair value of Asset = Current Asset + Property, plant and equipment + Other asset
= 14,800,000 + 30,000,000 + 3,200,000
= 48,000,000
Fair value of Liabilities = Current Liability + Long term Liability
= 6,600,000 + 10,400,000
= 17,000,000
