2. HGH Co acquired 80% of the ordinary shares of STS Co on 1 May 2015. On 31 December 2014 STS Cos accounts showed a share premium account of $4,000 and retained earnings of $12,000. The market price of the subsidiarys shares was $3.00 prior to acquisition by the parent. HGH Co values NCI at fair value

Required

Determine goodwill at the acquisition date and prepare consolidated statement of financial position of HGH group at 31 December 2015.

Statement of financial position

	HGH Co	STS Co
PPE	30,000	27,000
8,000 ordinary shares of $1 each in STS Co	42,000	-
	72,000	27,000
Current assets	78,000	46,000
	150,000	73,000
Ordinary shares of $1 each	100,000
Ordinary shares of $1 each		10,000
Share premium	10,000	4,000
Retained earnings	20,000	35,000
	130,000	59,000
Current liabilities	20,000	24,000
Total equity and liabilities	150,000	73,000