WAEC Financial Accounting 1997 Question 44

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

1. A.N4,000
2. B.N3,000
3. C.N2,000
4. D.N1,600
5. E.N1,000.