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On July 8th, 2013 LVMH purchased 80% of Loro Piana (luxury Italian cashmere brand) for $2.8 billion. The fair value of Loro Pianas identifiable assets
On July 8th, 2013 LVMH purchased 80% of Loro Piana (luxury Italian cashmere brand) for $2.8 billion. The fair value of Loro Pianas identifiable assets and liabilities on that date were as follows:
Million $
Current Assets 500
Brand 1,500
Fixed Assets 1,000
Liabilities 1,300
The remaining 20% interest remained in Loro Piana familys hands. Part I - Required: 1. LVMH applied the proportionate share method to account for its acquisition of Loro Piana. How much noncontrolling interest and goodwill did LVMH recognize on July 8th, 2013?
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