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Question 2 Warsaw Ltd acquired 60% of the ordinary shares of Krakow Ltd on 1 September 2020 when the issued share capital of Krakow
Question 2 Warsaw Ltd acquired 60% of the ordinary shares of Krakow Ltd on 1 September 2020 when the issued share capital of Krakow Ltd was 3 million and its retained earnings 1 million. The consideration is as follows: A. The issue of one million ordinary 1 shares in Warsaw Ltd at market value 2.20; B. A cash payment of 330,000. The non-controlling interests in the net assets of Krakow Ltd as at 1 September 2020 is valued at 1,650,000. Required: Calculate the following as at 1 September 2020: A. Goodwill B. Non-controlling interests
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