08) Nina acquired a 75% controlling interest in Pinta in two stages.1) In 2012, Nina acquired 15% equity interest for cash considerationof $10,000. Nina classified the interest as available for- sale under IAS 39.From 2012 to the end of 2014, Nina reported fair value increases of $2,000in other comprehensive income (OCI)2) On January 2014, Nina acquired a further 60% equity for a cashconsideration of $60,000. Nina identified net assets of Pinta with a fairvalue of $80,000.Nina elected to measure non-controlling interest at their share of net assets.On the date of the acquisition, the previously-held 15% interest had a fair valueof $12,500.Calculate the cost of investment that will be used in computing goodwillSelect one:a.$60,000O b. $10,000O c. $80,000O d. $70,000

Goodwill - Goodwill is the difference between the fair market value of all the assets acquired…

Nina acquired a 75% controlling interest in Pinta in two stages. 1) In 2012, Nina acquired 15% equity interest for cash consideration of $10,000. Nina classified the interest as available-for- sale under IAS 39. From 2012 to the end of 2014, Nina reported fair value increases of $2,000 in other comprehensive income (OCI) 2) On January 2014, Nina acquired a further 60% equity for a cash oration of $60.000 Nino identified: Dinto with fair

Nina acquired a 75% controlling interest in Pinta in two stages. 1) In 2012, Nina acquired 15% equity interest for cash consideration of $10,000. Nina classified the interest as available-for- sale under IAS 39. From 2012 to the end of 2014, Nina reported fair value increases of $2,000 in other comprehensive income (OCI) 2) On January 2014, Nina acquired a further 60% equity for a cash oration of $60.000 Nino identified: Dinto with fair

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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