Nina acquires a 75% controlling interest in Pinta in two stages. In 2012 Nina acquire 15% equity
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Question:
In 2012 Nina acquire 15% equity interest for a cash consideration of $100,000. Nina classified the interest as available for sale under IAS 39. From 2012 to the end of 2014, Nina reported fair value increases of $2000 in other comprehensive income (OCI)
On January 2014, Nina acquired a further 60% equity for a cash consideration of $60,000. Nina identified net assists of Pinta with a fair value of $80,000.
Nina elected to measure non-controlling interest at their share of net assets. On the date of the acquisition, the previous-held 15% interest had a fair value of $12,500.
Calculate the cost of investment that will be used in computing goodwill.
Calculate the goodwill arising on this transaction
Calculate the gain arising that will be recognized in the income statement
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
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