What is the value of goodwill at the date of acquisition?
Options
KeeleyJ
Registered Posts: 4
- invested £475,000 in 300,000 ordinary shares of £1 each
- at date of acquisition the equity compromised £500,000 in share capital and £150,000 in retained earnings
- non-controlling interest was valued at their proportionate share of net assets at acquisition.
Any help and workings would be much appreciated!
Thanks all
- at date of acquisition the equity compromised £500,000 in share capital and £150,000 in retained earnings
- non-controlling interest was valued at their proportionate share of net assets at acquisition.
Any help and workings would be much appreciated!
Thanks all
0
Comments
-
Net assets on acquisition = £500,000 + £150,000 = £650,000
Controlling interest = 300,000/500,000 = 60%
Goodwill = £475,000 - (60% x £650,000) = £85,0000
Categories
- All Categories
- 1.2K Books to buy and sell
- 2.3K General discussion
- 12.4K For AAT students
- 263 NEW! Qualifications 2022
- 144 General Qualifications 2022 discussion
- 9 AAT Level 2 Certificate in Accounting
- 44 AAT Level 3 Diploma in Accounting
- 66 AAT Level 4 Diploma in Professional Accounting
- 8.8K For accounting professionals
- 23 coronavirus (Covid-19)
- 268 VAT
- 90 Software
- 271 Tax
- 133 Bookkeeping
- 7.1K General accounting discussion
- 195 AAT member discussion
- 3.8K For everyone
- 38 AAT news and announcements
- 345 Feedback for AAT
- 2.8K Chat and off-topic discussion
- 578 Job postings
- 16 Who can benefit from AAT?
- 35 Where can AAT take me?
- 42 Getting started with AAT
- 26 Finding an AAT training provider
- 48 Distance learning and other ways to study AAT
- 25 Apprenticeships
- 66 AAT membership