Maxwell Industries paid $18 per share for 80 percent of the 10,000 outstanding shares of Kendall Hall.

Question:

Maxwell Industries paid $18 per share for 80 percent of the 10,000 outstanding shares of Kendall Hall. The balance sheet of Kendall Hall and additional market value information follow.

a. Compute the amounts of goodwill and non-controlling interest recognized by Maxwell.b. Compute goodwill and non-controlling interest assuming that Maxwell uses IFRS and chooses the accounting treatment that assumes that the minority shareholders have no equity interest in the goodwill.c. Where on the balance sheet would non-controlling interest bedisclosed?

Goodwill
Goodwill is an important concept and terminology in accounting which means good reputation. The word goodwill is used at various places in accounting but it is recognized only at the time of a business combination. There are generally two types of... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...