Question
1 April 20X2, Prog Co acquired 75,000 of Seng Co's 100,000 S1 equity shares. On A Phoebi The acquisition was made through a share exchange
1 April 20X2, Prog Co acquired 75,000 of Seng Co's 100,000 S1 equity shares.
On A Phoebi
The acquisition was made through a share exchange of two shares in Prog Co for every three shares acquired in Seng Co. In addition to the share exchange, Prog Co also paid immedate cash coruderdin of $2 per share acquired
On 1 April 20X2 the stock market price of Prog Co's and Seng Co's shares was $4 and $3 per share respectively.
Prog Co's policy is to value non-controlling interests at fair value at acquisition.the idenlifable nel assels of Seng Co al 1 April 20X2 was $120.000
What is the goodwill arising on the acquisition of Seng Co at 1 April 20X2?
O $260,000
O $305,000
O $230,000
O $330,000
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Investing In People Financial Impact Of Human Resource Initiatives
Authors: John W. Boudreau, Wayne F. Cascio, Alexis A. Fink
3rd Edition
1586446096, 978-1586446093
