A) A Parent Company acquired 60% equity interest in a subsidiary company for 440 million. The Market value of the net assets of the Subsidiary on acquisition date was 400 million. The Parent Company estimates that the full 100% interest in the subsidiary company would have cost 640 million You are required to: A) Calculate the goodwill at acquisition date where non-controlling interest is measured 1. As a proportionate share of the net assets of the subsidiary company. (5 Marks) II. At fair value (The Full good will method). (5 Marks) B) The statements of financial position of Tower Plc and Holborn Plc as at December 31, 2015 were as follows: Holborn PLC EMillion 5,000 Tower PLC Property Plant & Equipment Investment in Tower Plc Other Assets E'Million 9,000 5,000 2.000 16,000 500 1,500 6,500 500 Share Capital Retained Earnings Other Liabilities 14,500 1000 16,000 5,000 1,000 6,500 Tower Plc acquired 80% equity interest in Holborn Plc two (2) years ago. At the date of acquisition Tower's retained earnings stood at 3million and the fair value of its net assets was 5million. This was 1.5million above the carrying amount of the net assets at this date. The fair value adjustment related to an asset that had a remaining useful economic life of 10 years as at the date of acquisition. The goodwill arising on consolidation has not suffered any impairment.