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On 1 October 20X8 Peter acquired 80% of the one million equity shares in Steve, by way of a share exchange of 2 new shares
On 1 October 20X8 Peter acquired 80% of the one million equity shares in Steve, by way of a
share exchange of 2 new shares in Peter for every 5 acquired in Steve.
On this date the fair value of Steve's net assets was 2,000,000. Peters share price was 5.40,
and the fair value of the non-controlling interest in Steve was 850,000.
In the year ended 31 March 20X9 goodwill had been impaired by 200,000. Peter measures
goodwill using the fair value method.
Required:-
Calculate the goodwill arising on the acquisition of Steve as at 1 October 20X8?
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