Graham Limited acquired 90% of the share capital and reserves of Terry Limited for $340,000. Share capital was $100 000 and reserves amounted to $124 000. All assets and liabilities were recorded at fair value except equipment which was recorded at $60 000 below fair value. The company tax rate was 30%. The partial goodwill method is adopted by the group. The amount of goodwill acquired by Graham Limited in this business combination was:

A) $5 600
B) $10 000
C) $10 600
D) $26 000

In order to calculate the value of the marginal product of labor, a manager must know the marginal product of labor and the wage rate of the worker.

Economic income is the sum of consumption and

A) net worth.
B) the change in net worth.
C) wealth.
D) transfer payments.

The quality of receivables refers to the likelihood of collection without loss.

If a woman is having a dress custom made for her, the ________ standard applies.

A) Subjective satisfaction
B) Express satisfaction
C) Objective satisfaction
D) Absolute satisfaction
E) Unbiased satisfaction

The feature that distinguishes monopolistic competition from perfect competition is that monopolistically competitive firms are

A) large relative to the market.
B) price takers.
C) able to block the entry of other firms.
D) able to differentiate their products.