Cloud obtained a 60% holding in the 100,000 GHS1 shares of Mist on 1 January 2018, when the retained earnings of Mist were GHS850,000. Consideration comprised GHS250,000 cash, GHS400,000 payable on 1 January 2019 and one share in Cloud for each two shares acquired. Cloud has a cost of capital of 8% and the market value of its shares on 1 January 2018 was GHS2.30. Cloud measures non-controlling interest at fair value. The fair value of the non-controlling interest at 1 January 2018 was estimated to be GHS400,000. 92 What was the goodwill arising on acquisition? GHS139,370 GHS169,000 GHS119,370 GHS130,370

Cloud obtained a 60% holding in the 100,000 GHS1 shares of Mist on 1 January 2018, when the retained earnings of Mist were GHS850,000. Consideration comprised GHS250,000 cash, GHS400,000 payable on 1 January 2019 and one share in Cloud for each two shares acquired. Cloud has a cost of capital of 8% and the market value of its shares on 1 January 2018 was GHS2.30. Cloud measures non-controlling interest at fair value. The fair value of the non-controlling interest at 1 January 2018 was estimated to be GHS400,000. 92 What was the goodwill arising on acquisition? GHS139,370 GHS169,000 GHS119,370 GHS130,370

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

ChapterA2: Investments

Section: Chapter Questions

Problem 24E

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