Hi teacher,

This is the solution to a question(I have the solution but I do not know why that is the case), however, I still do not understand, so please answer the question I asked following, instead of the question in the picture, and please give me a detailed explanation, then I'll thumb you up. Thanks

My question: Can you please tell me, why option C should not be considered in the measurement of goodwill at the acquisition date? Shouldn't we use the total identifiable asset of the 'subsidiary' company, minus the prior holdings(part the parent company has already got), to calculate the rest of the identifiable, and then use it to calculate goodwill by minus the consideration?

Question 5 0 / 1 pts Which of the following information will not be considered in the measurement of goodwill in a business combination at acquisition date? a) Share price of acquiree at acquisition date. b) Share price of acquirer at acquistion date. Her c) Share price of acquiree when acquirer purchased prior holdings. d) Share price of acquirer when take over bid is made ed e) Share price of acquiree when take over mid is made