red 90% of the ord 125m on 31 Decen ets were as follows
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
B8.
Transcribed Image Text:Broom acquired 90% of the ordinary shares of
Handle for €125m on 31 December 20X4
when its assets were as follows:
Land and buildings
Vehicles
Stock
Debtors
Creditors
Book Fair
Value
C.
€8m
d.
€26m
€m
12
26
35
27
10
Value
€m
40
23
30
27
10
The goodwill on acquisition of Handle (based
on parent company extension method) is:
a.
€15m
b.
€44m
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