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Dawlish plc acquires 75% of the share capital of Tiverton Ltd on 1 December 20X1. The consideration given is 1 million in cash and 300,000

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Dawlish plc acquires 75% of the share capital of Tiverton Ltd on 1 December 20X1. The consideration given is 1 million in cash and 300,000 1 ordinary shares of Dawlish plc. The market value of each of Dawlish ple's shares on 1 December is 3.00. On 1 December the fair value of Tiverton Ltd's net assets is 1 million in accordance with IFRS 3 (revised) Business Combinations, what is the amount of goodwill acquired in the business combination to be dealt with in Dawlish ple's consolidated accounts? Select one: a 550,000 b. 1,150,000 c. 900,000 d. 425,000 e. 300,000

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