On 1 July 2022, Wickham Ltd purchased 70% of t At that date, the net assets of Nelson Ltd were ret share capital of Nelson Ltd for $400,000 in cash. sent by: Share Capital $140,000 General Reserve $120,000 Retained Earnings $80,000 Total $340,000 On the acquisition date, the fair value of the non-controlling interest (NCI) in Nelson Ltd was assessed to be $150,000 On the acquisition date, the machinery owned by Nelson Ltd was undervalued by $60,000. The machinery was depreciated on a straight-line basis over 10 years with zero residual value. All other assets and liabilities were stated at fair value. The tax rate is 30% Using the Full Goodwill Method, what is the total amount of goodwill of the subsidiary calculated from the acquisition analysis?

Answer rating: 100% (QA)

To calculate the total amount of goodwill using the Full Goodwill Method we need to consider the fai... View the full answer