WAEC - Accounts Principles Of Accounts (1997 - No. 37)

Use the following information to answer this question

A business whose assets consisted of stock N15,000 and debtors N8,000 was bought by issuing 20,000 ordinary shares of N1 each at a premium of 20 percent.

The amount of goodwill was
N4,000
N3,000
N2,000
N1,6000
N1,000

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