Please only answer multiple Choice questions. Q$4$ Q$5$ andQ$6$

Q$4$ Using the 'new' $/$ fair value method for valuing non$-$controlling interests, what is the value of non$-$controlling interests at $31$ December $2018($the date of acquisition$)?2,090,4002,200,0002,664,7202,774,320$

Q$5$ Using the 'old' $/$ proportionate share method for valuing non$-$controlling interests, what is the value of goodwill at $1$ January $2018?6,620,9521,743,3522,090,4006,968,000$Q$6$ Using the 'new' $/$ fair value method for valuing non$-$controlling interests, what is the value of goodwill at $1$ January $2018?2,200,0006,968,0006,620,9521,852,952$

On $1$ January $2018,$ Bournemouth ple acquired $70\%$ of the $2,600,000$ ordinary shares of Southampton Limited when the retained earnings of Southampton Limited were $2,368,000.$ The consideration consisted of cash of $6,240,000$ paid on $1$ January $2018$ and a further cash payment of $400,000$ deferred until $1$ January $2019.$ The fair values of the assets, liabilities and contingent liabilities of Southampton Limited at this date were equal to their carrying amounts, with the exception of property which has a fair value of $800,000$ in excess of its carrying amount. The property had a remaining useful life of $25$ years at the date Bournemouth plc acquired its shares in Southampton Limited. The fair value of noncontrolling interests at the date of acquisition was $2,200,000.$ Bournemouth plc$\text{'}$s cost of capital is $5\%.$

The net assets of Southampton Limited at the $31$ December $2018$ were as follows:

$\backslash$table$[[,$f$],[$Ordinary share capital $(1$ shares$),2,600,000],[$Share premium,$1,200,000],[$Retained earnings,$4,314,400]]$

Requirement

$($a$)$ With reference to the acquisition of Southampton Limited, calculate the goodwill arising at the date of acquisition and the non$-$controlling interest at $31$ December $2028$ using the two different methods allowed by IFRS $3$ Business Combinations. Briefly comment on your answers.

$13$ Marks

$($b$)$ In the context of business combinations, explain what is meant by 'goodwill'. Is this figure objective?