Snoopy Co acquired 40% of the equity interests of Woodstock Co for a cash consideration of $430 million, on May 1, 2015. Woodstock's carrying amount and fair value of it's the identifiable net assets at this date was $1,023 million.

This investment in Woodstock was equity accounted for by Snoopy up to April 30, 2016. Snoopy then acquired control of Woodstock on May 1, 2016 by acquiring a further 40% interest; at that date, the retained earnings and other components of equity of Woodstock were $273 million and $53 million respectively. The finance director has recorded a negative goodwill figure of $552 million on acquisition, being the cash consideration of $500 million less fair value of the identifiable net assets of $1,052 million. On May 1, 2016, Snoopy Co.'s share price was $6.00 and Woodstock Co.'s was $1.80. It has been decided that the fair value of the original 40% holding and the fair value of the remaining shares that comprises the non-controlling interest should both be measured using the market value of the shares.

On May 1, 2016, Snoopy had 1,560,000 shares of par value of $1 in issue, while Woodstock had 650,000 shares of par value of $1 in issue.

Required:

A. Explain, with suitable workings, how goodwill should have been calculated on the acquisition of Woodstock.