What is the value of goodwill at the date of acquisition?

- 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

Answers

  • hal978hal978 LondonRegistered Posts: 60
    Net assets on acquisition = £500,000 + £150,000 = £650,000
    Controlling interest = 300,000/500,000 = 60%
    Goodwill = £475,000 - (60% x £650,000) = £85,000
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