2. At 1 January 20X6 Steller acquired 75% of the share capital of Nebula for capital of Nebula consisted of 20,000 ordinary shares of $1 each and its reserves were $10,000. The fair value of the non-controlling interest was valued at $150,000 at 31 December 20X8. In the consolidated statement of financial position of Steller and its subsidiary Nebula at 31 December 20X8, what amount should appear for goodwill?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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2. At 1 January 20X6 Steller acquired 75% of the share capital of Nebula for $750,000. At that date the share
capital of Nebula consisted of 20,000 ordinary shares of $1 each and its reserves were $10,000.
The fair value of the non-controlling interest was valued at $150,000 at 31 December 20X8. In the
consolidated statement of financial position of Steller and its subsidiary Nebula at 31 December 20X8, what
amount should appear for goodwill?
Transcribed Image Text:2. At 1 January 20X6 Steller acquired 75% of the share capital of Nebula for $750,000. At that date the share capital of Nebula consisted of 20,000 ordinary shares of $1 each and its reserves were $10,000. The fair value of the non-controlling interest was valued at $150,000 at 31 December 20X8. In the consolidated statement of financial position of Steller and its subsidiary Nebula at 31 December 20X8, what amount should appear for goodwill?
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