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Holder Inc acquired 150,000 $1 ordinary shares in Šub Inc on 1 July 20X6 at a cost of $300,000. Sub Inc's reserves at 1 July 20X6 were $36,000 and its issued ordinary share capital was $200,000. The fair value of the non-controlling interest at acquisition was $100,000. At 30 June 20X9 Sub Inc's reserves were $16,000. What is the goodwill arising on consolidation?

Holder Inc acquired 150,000 $1 ordinary shares in Šub Inc on 1 July 20X6 at a cost of $300,000. Sub Inc's reserves at 1 July 20X6 were $36,000 and its issued ordinary share capital was $200,000. The fair value of the non-controlling interest at acquisition was $100,000. At 30 June 20X9 Sub Inc's reserves were $16,000. What is the goodwill arising on consolidation?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Holder Inc acquired 150,000 $1 ordinary shares in Sub Inc on 1 July 20X6 at a cost of $300,000. Sub Inc's reserves at 1 July 20X6 were $36,000 and its issued ordinary share capital was $200,000. The fair value of the non-controlling interest at acquisition was $100,000. At 30 June 20X9 Sub Inc's reserves were $16,000. What is the goodwill arising on consolidation?
Transcribed Image Text:Holder Inc acquired 150,000 $1 ordinary shares in Sub Inc on 1 July 20X6 at a cost of $300,000. Sub Inc's reserves at 1 July 20X6 were $36,000 and its issued ordinary share capital was $200,000. The fair value of the non-controlling interest at acquisition was $100,000. At 30 June 20X9 Sub Inc's reserves were $16,000. What is the goodwill arising on consolidation?
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