Broom acquired 90 of the ordinary shares of Handle for 125m on 31 December 20X4 when its assets were as follows Book Value Fair Value m m Land and buildings 12 40 Vehicles 26 23 Stock 35 30 Debtors 27 27 Creditors 10 10 Calculate the goodwill on acquisition of Handle (based on parent company extens...

Goodwill is calculated as the excess of the cost of investment over the fair value of net i ...

Broom acquired 90% of the ordinary shares of Handle for 125m on 31 December 20X4 when its

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Broom acquired 90% of the ordinary shares of Handle for €125m on 31 December 20X4 when its assets were as follows:

	Book Value	Fair Value
	€m	€m
Land and buildings	12	40
Vehicles	26	23
Stock	35	30
Debtors	27	27
Creditors	10	10

Calculate the goodwill on acquisition of Handle (based on parent company extension method)?

Related Book For answer-question

Income Tax Fundamentals 2013

ISBN: 9781285586618

31st Edition

Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill

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Posted Date: Dec 27, 2023 01:32 AM

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