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P Ltd acquired control with the acquisition of an 80% interest in S Ltd for R1 100 000 on I January 2008. On this date theshare capital of S Ltd was R200 000 consisting of 200 000 ordinary shares and the retained earnings amounted toR800 000. The fair value of the net assets of S Ltd amounted to R1 000 000 on 1 January 2008 Non- controlling interests in the acquire are measured as the Non-controlling interest’s proportionate share of theacquiree’s net identifiable assets How much goodwill will be attributable to the Non-controlling interest at acquisition? Select one: a. RNIL b. R60 000 c. R200 000 d.

P Ltd acquired control with the acquisition of an 80% interest in S Ltd for R1 100 000 on I January 2008. On this date theshare capital of S Ltd was R200 000 consisting of 200 000 ordinary shares and the retained earnings amounted toR800 000. The fair value of the net assets of S Ltd amounted to R1 000 000 on 1 January 2008 Non- controlling interests in the acquire are measured as the Non-controlling interest’s proportionate share of theacquiree’s net identifiable assets How much goodwill will be attributable to the Non-controlling interest at acquisition? Select one: a. RNIL b. R60 000 c. R200 000 d.

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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P Ltd acquired control with the acquisition of an 80% interest in S Ltd for R1 100 000 on I January 2008. On this date theshare capital of S Ltd was R200 000 consisting of 200 000 ordinary shares and the retained earnings amounted toR800 000. The fair value of the net assets of S Ltd amounted to R1 000 000 on 1 January 2008
Non- controlling interests in the acquire are measured as the Non-controlling interest’s proportionate share of theacquiree’s net identifiable assets
How much goodwill will be attributable to the Non-controlling interest at acquisition?
Select one:
a.
RNIL
b.
R60 000
c.
R200 000
d.
R300 000 

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