(a)[3]
State three distinctions between goodwill and a tangible asset.
(b)[3]
Calculate the purchase consideration payable by W Limited.
(c)[8]
Complete Ada’s and Brian’s capital accounts on page 9, and show the final settlement through the partnership’s cash at bank account.
(d)[2]
Prepare W Limited’s journal entry to record the takeover of the partnership business.
(e)[4]
Explain why W Limited rejected the original demand for five times the average profit. Support your answer with relevant calculations.
(f)[5]
Evaluate whether Ada and Brian were right to select option 1. Justify your answer.