Alpha Co acquired 80% of all the share capital of Beta Co on 1 January. The consideration given was $902,900. On 1 January the fair value of Beta Co's net tangibles asset was $900,000 and the fair value of the non-controlling interest was $70,000.
At 31 December the fair value of the net tangible assets of Beta Co are $1,350,000.
What is th goodwill arising from consolidation?
Suggested solutions:
| $ | |
| Investment | 902,900 |
| NCI fair value | 70,000 |
| Less Net assets taken over | (900,000) |
| Goodwill | 72,900 |
To do the same topic again in ACCA F3 consolidated goodwill 5