Finolex limited purchased 80% of the equity of gemtek co on 1 Jan 2020 for $ 1000,000 .the fair value of gemtek co net asset at the date of acquisition was $ 800,000. Finolex determined that the good will is impaired by 10% at 31 December 2020.

a) Calculate the good will as at 31 December 2020 as fully owned by Finolex limited.

b) Calculate the value of good will at 31 December assuming non-controlling interest is valued at its fair value of $200,000.

c) Explain how the impairment loss would be allocated between the group and non-controlling interest?

Answer rating: 100% (QA)

Goodwill recognized on date of acquisition Purchase Consideration Fair value of net assets of acquir... View the full answer