2. At 1 January 20X6 Steller acquired 75% of the share capital of Nebula for capital of Nebula consisted of 20,000 ordinary shares of $1 each and its reserves were $10,000. The fair value of the non-controlling interest was valued at $150,000 at 31 December 20X8. In the consolidated statement of financial position of Steller and its subsidiary Nebula at 31 December 20X8, what amount should appear for goodwill?
2. At 1 January 20X6 Steller acquired 75% of the share capital of Nebula for capital of Nebula consisted of 20,000 ordinary shares of $1 each and its reserves were $10,000. The fair value of the non-controlling interest was valued at $150,000 at 31 December 20X8. In the consolidated statement of financial position of Steller and its subsidiary Nebula at 31 December 20X8, what amount should appear for goodwill?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:2. At 1 January 20X6 Steller acquired 75% of the share capital of Nebula for $750,000. At that date the share
capital of Nebula consisted of 20,000 ordinary shares of $1 each and its reserves were $10,000.
The fair value of the non-controlling interest was valued at $150,000 at 31 December 20X8. In the
consolidated statement of financial position of Steller and its subsidiary Nebula at 31 December 20X8, what
amount should appear for goodwill?
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education