Financial Accounting and Reporting - Entry Test

Question 1 of 10

The following is the closing balance sheet for an advertising agency which your company has just purchased for £5M.

Fixed Assets            £'000s
 Fixtures and fittings   65
Current Assets
Cash                        250
Debtors                    145
Creditors due in >1 year
Tax payable              25
Dividend payable       65
                               370
Shareholders Funds
Share capital            20
P&L account            350
                               370

What is the amount of goodwill purchased?