a. P Co. acquired 40,000 shares of S Co. on January 1st 20X2. Until that date, S had issued 110,000 shares, 10% of which are non-voting shares. Additionally, P was granted by 3 shareholders (each holding 5% of S's ordinary shares) the right to vote on financial and operating decisions of S.
Requirement: Analyse the relationship between P Co. and S Co.

b. Zito acquired 60% of the 200,000 $1 equity shares of Beta on 1 April 2021 when the retained earnings of Beta were $350,000. Consideration comprised 200,000 by cash, and X payable on 31 March 2022, and 2 shares in Zito for each 5 shares acquired. The book values of B's net assets at acquisition date were equal to their fair values except a borrowing which had a book value of 400,000 and a fair value of $500,000.The market value of Zito shares on 1 April 2021 was $1.5 and Zito has a cost on capital of 10%.

Find X value so that the goodwill at the acquisition date is positive. Calculate the goodwill arising on acquisition.