Question
GOODWILL COMPUTATION-STOCK ACQUISITION On September 2019, Company acquires 75% (750,000 ordinary shares) of AREA Company for 7,500,000 (10 per share). In the period around acquisition
GOODWILL COMPUTATION-STOCK ACQUISITION
On September 2019, Company acquires 75% (750,000 ordinary shares) of AREA Company for 7,500,000 (10 per share). In the period around acquisition date, the AREA Company shares are trading at 8 per share. The fair value of AREA Company is 9,700,000. Assuming the fair value of the net assets is 8,000,000, answer the following questions:
1. Goodwill if partial method is used.
2. Value of Non-controlling interest using partial method
3. Good will if full method is used
4. Value of Non-controlling interest using full method
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Cost Accounting Foundations and Evolutions
Authors: Michael R. Kinney, Cecily A. Raiborn
8th Edition
9781439044612, 1439044619, 978-1111626822
