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Ikon Fvrnitre Ltd. an office furniture retailer and whoIesaler,carries a particular brand of office chair. Ikon Furniture Ltd has just acquired the Tiny Tots business.
Ikon Fvrnitre Ltd. an office furniture retailer and whoIesaler,carries a particular brand of office chair. Ikon Furniture Ltd has just acquired the Tiny Tots business. The fair value ol Tm Tots net assets as at the date of acquisition is $.1855 O00 Ikon Furniture Ltd has ajeed to pay the owners of Tinl Tots $1 000 000 in cash and give them 100 000 shires in ikon Vurriiture Ltd valued at $10 per share. Cakulatethe goodwill that. would be recognised in Ikons balance sheet immediatety after thacquition. How will this goodwiii be trated subsequent to its recognition?
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