Sally's Salsa shop has a balance sheet value of equities and liabilities of $10m ....

60.1K

Verified Solution

Question

Accounting

Sally's Salsa shop has a balance sheet value of equities and liabilities of $10m . It is acquired by Tim's Taco Truck for $15.

How is the extra $5m recorded on the balance sheet ?

-A sunk costs

-A goodwill

-A non-current liabilities

-It is not recorded on the balance sheet.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students