Question
Broom acquired 90% of the ordinary shares of Handle for 125m on 31 December 20X4 when its assets were as follows: Book Value Fair Value
Broom acquired 90% of the ordinary shares of Handle for €125m on 31 December 20X4 when its assets were as follows:
Book Value | Fair Value | |
€m | €m | |
Land and buildings | 12 | 40 |
Vehicles | 26 | 23 |
Stock | 35 | 30 |
Debtors | 27 | 27 |
Creditors | 10 | 10 |
Calculate the goodwill on acquisition of Handle (based on parent company extension method)?
Step by Step Solution
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Step: 1
Goodwill is calculated as the excess of the cost of investment over the fair value of net i...
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
