i.Partial goodwill is applied

ii.Full goodwill is applied

Question 2 Given below are the statements of financial position of Bruce and Willis as at 31 December 2019 Bruce Willis RM'0 00 RM'0 0 0 Assets Invesment in Willis at cost 500 Sundry net assets 1,200 650 1,700 650 Equity Ordinary share capital 1,400 400 Retained profit 200 200 Liabilities 100 50 1,700 650 Additional information: a. Bruce acquired 150,000 of the 200,000 issued ordinary shares of Willis on 31 December 2019 for RM 500,000.| b. The fair value of one ordinary shares of Willis on 31 December 2019 was RM3.20