The answer is B. He wanted to do the right thing, but the situation was very confusing.
Answer:
Liabilities
Explanation:
Liabilities are the debts and obligations that a business owes.
Answer:
The goodwill is $9,220
Explanation:
Goodwill is the excess of purchase consideration paid to acquire a business over the fair value of net assets acquired.
Fair value of net assets acquired is the difference between the fair of assets acquired over the fair value of liabilities taken up which is shown below.
Net assets=$89,600-$14,800
Net assets =$74,800
Since purchase consideration paid is $84020
Goodwill=$84,020-$74800
Goodwill=$9,220
The goodwill of $9220 represents the premium paid over the net assets of Catteman's Steakhouse as a compensation to the owners of the business in return for their efforts of running the business and see go through different phases of development since the establishment of the business.
the overall hange is a net-gain of 17% as the company's total revunue experienced an overall positive outcome over said two year period. :)