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5. RC Co purchased 60% of the ordinary shares of Carp Co on 1 June 2002 for 8,000,000. The summarised balance sheet of Carp Co
5. RC Co purchased 60% of the ordinary shares of Carp Co on 1 June 2002 for 8,000,000. The summarised balance sheet of Carp Co on this date disclosed: Ordinary share capital Share premium account Revaluation reserves Retained earnings 000 2,500 1,200 1,000 6,750 11,450 The fair value of the separable net assets of Carp Co exceeded their book value by 350,000. The balance sheet of Carp Co included goodwill of 1,000,000. Goodwill arising on consolidation amounted to: A. 920,000 C. 1,730,000 B. 1,520,000 D. 2,800,000
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