At 1 April 20X3 S held 80 000 of the 100 000 issued ordinary shares of T The acquisition of T took place on 1 April 20X2 and goodwill on acquisition was recorded at $120 000 The directors of Shave agreed that the goodwill on acquisition has been impaired by $36 000 as at 1 October 20X3 On 1 October...

Disposal proceeds 125 Share of net assets d ...

At 1 April 20X3 S held 80 000 of the 100 000 issued ordinary shares of T.

Question:

At 1 April 20X3 S held 80 000 of the 100 000 issued ordinary shares of T. The acquisition of T took place on 1 April 20X2 and on acquisition was recorded at $120 000. The directors of Shave agreed that the on acquisition has been impaired by $36 000 as at 1 October 20X3. On 1 October 20X3, S disposes of $20 000 shares in T for $125 000. At that date Ts total net assets are $400 000.
Calculate the consolidated profit and loss before tax on disposal of the shares. Goodwill
Goodwill is an important concept and terminology in accounting which means good reputation. The word goodwill is used at various places in accounting but it is recognized only at the time of a business combination. There are generally two types of...