Net Assets minus Capital Reserve is
А.
Goodwill
B
Total assets
C
Purchase consideration
D
None of these
Answers
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Answer:
c part purchase consideration...
plz check is correct or not
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Introduction:
Under this technique, 'Purchase Consideration' is defined as the total of all payments made to the transferor company's shareholders in the form of shares, debentures, other instruments, and cash.
Explanation:
A capital reserve is a defined fund or amount set aside to cover a company's future or unanticipated costs or losses. The value of a company's net assets is the sum of its assets less its liabilities.
When net asset is reduced from the capital reserve it is called purchase consideration.
Therefore, the correct option is C. Purchase
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