Question

Which of the following is considered while calculating purchase consideration under Net asset method?

• A. Assets taken over
• B. Liabilities taken over
• C. Goodwill taken over
• D. All of the above

Answer 1

Answer: (D)

All of the above

Ans :- Under this method, purchase consideration is calculated by adding up the values of various assets taken over by the purchasing company and then deducting there from the values of various liabilities taken over by the purchasing company.