A Ltd purchases the B Ltd for the following consideration of:

Cash : $150 000

Land: carrying amount of the land is $120 000; fair value is $195 000.

The statement of financial position of the B Ltd as at the date of acquisition shows assets of $390 000 and liabilities of $195 000. All assets are fairly valued except the B Ltd's building, which is in the accounts at $70 000 but has a fair value of $95 000. There are no contingent liabilities.

Required: Calculate the value of goodwill?

Answer rating: 100% (QA)

CALCULATIONS Goodwill Total consideration Net assets acquired Goodwill For our ... View the full answer