The equity share capital of Black Pearl Limited as on 31st December 2017 stood at 250
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The equity share capital of Black Pearl Limited as on 31st December 2017 stood at ₹ 250 million. The company has been in losses for the last few years and the accumulated losses in the balance sheet stood at ₹ 165 million. The promoters holding 60% stake in the company are not very hopeful about the future prospects of the company and decided to sell their entire stake to White Gold Limited for ₹ 45 million.
1. Ascertain the amount at which goodwill or capital reserve will be recognized on consolidation.
2. What will be the goodwill or capital reserve if the consideration is at ₹ 60 million?
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