Explanation

Goodwill is the extra amount paid above net asset value. First, calculate net assets: Plant (₦190,000) + Motor Vehicle (₦170,000) + Stock (₦60,000) – Current Liabilities (₦50,000) = ₦370,000.

Purchase consideration is the total price paid (₦400,000). Goodwill = Purchase price – Net assets = ₦400,000 – ₦370,000 = ₦30,000.

Remember: Goodwill is the premium paid for reputation, customer base, and other intangible benefits of an established business.