Fifer Co acquired 80% of the equity shares of Grampian Co on 1 January 20X4 for $5,000,000.
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Question:
- Fifer Co acquired 80% of the equity shares of Grampian Co on 1 January 20X4 for $5,000,000. The fair value of Grampian Co’s net assets at the date of acquisition was $4,000,000. At 31 December 20X4, Fifer Co has determined that goodwill is impaired by 10%.
- Required:
- For each of the following scenarios, calculate the value of goodwill at 31 December 20X4:
- 1. Non-controlling interest is valued at its fair value of $1,000,000; and
- 2. Non-controlling interest is valued as a proportionate share of net assets.
Related Book For
International Financial Reporting And Analysis
ISBN: 9781473766853
8th Edition
Authors: David Alexander, Ann Jorissen, Martin Hoogendoorn
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