a. The acquisition date for Winner plc’s purchase of the whole of the share capital in Summer Ltd was 1st July 2013. The consideration comprised 1,000,000 shares in Winner Plc to be issued on 1st July 2013, BDT 10 million in cash payable on 1st July 2013, BDT 5 million in cash payable on 1st July 2014 and BDT 4 million in cash payable on 1st July 2015.

The market price of one Winner plc share was BDT 45 on 1st July 2013, BDT 50 on 1st July 2014, and BDT 65 on 1st July 2015. A discount rate of 8% was appropriate. What is the total consideration for this acquisition?

b. KLM plc acquired 75% of EHM plc on 1st July 2014. The consideration comprised: five million 26 paisa ordinary shares of KLM plc (market price 65 paisa) to be issued on 1st July 2014 (issue cost of Tk. 10,000 was paid to Brac Bank Ltd.), Tk. 1 million cash payable on 1st July 2014 and a further 1 million 25 paisa ordinary shares of KLM plc to be issued on 1st July 2015.  

The fair value of the identifiable assets and liabilities recognized by EHM plc at 1st July 2014 is Tk. 3,728,000. The financial statements of EHM plc have for some years disclosed a contingent liability with a potential amount of Tk. 2 million. The fair value of this contingent liability at 1st July 2014 has been reliably estimated at Tk. 250,000.

What is the goodwill acquired in the business combination?