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8. Hagrid Co acquires 80% of the share capital of Potter Co on 1 December 2002. The consideration given is 2,000,000 in cash and 500,000
8. Hagrid Co acquires 80% of the share capital of Potter Co on 1 December 2002. The consideration given is 2,000,000 in cash and 500,000 ordinary shares of Hagrid Co. The market value of each of Hagrid Co's shares on 1 December is 2.5. On 1 December, the fair value of Potter Co's net tangible assets is 2,800,000. What is the amount of goodwill on acquisition to be dealt with in Hagrid Co's consolidated accounts? B 300,000 D 1,010,000 A 260,000 C 450,000 3
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