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Wheddon Co purchased 60,000 ordinary shares in Raleigh Co for $85,000 five years ago, when Raleigh Cos retained earnings were $20,000. Raligh Cos equity and
Wheddon Co purchased 60,000 ordinary shares in Raleigh Co for $85,000 five years ago, when Raleigh Cos
retained earnings were $20,000.
Raligh Cos equity and reserves at 31 July 20X9 were as follows:
Ordinary shares $1 80,000
Retained earnings 70,000
The fair value of the non-controlling interest at acquisition was $22,000.
What was the goodwill arising on acquisition of Raleigh Co?
A $7,000
B $10,000
C $25,000
D $43,000
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