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Cloud obtained a 60% holding in the 100,000 GHS1 shares of Mist on 1 January 2018, when the retained earnings of Mist were GHS850,000. Consideration comprised GHS250,000 cash, GHS400,000 payable on 1 January 2019 and one share in Cloud for each two shares acquired. Cloud has a cost of capital of 8% and the market value of its shares on 1 January 2018 was GHS2.30. Cloud measures non-controlling interest at fair value. The fair value of the non-controlling interest at 1 January 2018 was estimated to be GHS400,000. 92 What was the goodwill arising on acquisition? GHS139,370 GHS169,000 GHS119,370 GHS130,370

Cloud obtained a 60% holding in the 100,000 GHS1 shares of Mist on 1 January 2018, when the retained earnings of Mist were GHS850,000. Consideration comprised GHS250,000 cash, GHS400,000 payable on 1 January 2019 and one share in Cloud for each two shares acquired. Cloud has a cost of capital of 8% and the market value of its shares on 1 January 2018 was GHS2.30. Cloud measures non-controlling interest at fair value. The fair value of the non-controlling interest at 1 January 2018 was estimated to be GHS400,000. 92 What was the goodwill arising on acquisition? GHS139,370 GHS169,000 GHS119,370 GHS130,370

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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3 Cloud obtained a 60% holding in the 100,000 GHS1 shares of Mist on 1 January
2018, when the retained earnings of Mist were GHS850,000. Consideration comprised
GHS250,000 cash, GHS400,000 payable on 1 January 2019 and one share in Cloud for each
two shares acquired. Cloud has a cost of capital of 8% and the market value of its shares on 1
January 2018 was GHS2.30. Cloud measures non-controlling interest at fair value. The fair
value of the non-controlling interest at 1 January 2018 was estimated to be GHS400,000.
92
What was the goodwill arising on acquisition?
GHS139,370
GHS169,000
GHS119,370
GHS130,370   

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