Goodfellas acquired 70% of the 200,000 equity shares of Badfellas, its only subsidiary, on 1 April 2018 when the retained earnings of Badfellas were $450,000. The carrying amounts of Badfellas' net assets at the date of acquisition were equal to their fair values apart from a building which had a carrying amount of $600,000 and a fair value of $850,000. The remaining useful life of the building at the acquisition date was 40 years. Goodfellas measures non-controlling interest at fair value, based on share price. The market value of Badfellas shares at the date of acquisition was $1.75. At 31 March 20X9 the retained earnings of Badfellas were $750,000. At what amount should the non- controlling interest appear in the consolidated statement of financial position of Goodfellas at 31 March 20X9? Select one alternative $135,000 $188,750 $195,000 $193,125
Goodfellas acquired 70% of the 200,000 equity shares of Badfellas, its only subsidiary, on 1 April 2018 when the
Goodfellas measures non-controlling interest at fair value, based on share price. The market value of Badfellas shares at the date of acquisition was $1.75.
At 31 March 20X9 the retained earnings of Badfellas were $750,000. At what amount should the non- controlling interest appear in the consolidated
Select one alternative
- $135,000
- $188,750
- $195,000
- $193,125
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