On 31 December 20x8, A Ltd paid $2,200,000 to acquire 80% of B Ltd when B Ltd’s net assets were represented by share capital of $1,000,000 and retained profit of $1,000,000. On this date, both A Ltd and B Ltd had an unrecognized brand-name that was deemed to have a market value of $500,000 each. In A Ltd’s 20x8 consolidated financial statements:
Goodwill on consolidation = $....................................................................
Non-controlling interest = $........................................................................
Brand-name = $..........................................................................................
step by step solution for your better understanding
•note - non controlling intrest calculated in second answer.
net assets = $10,00,000+$10,00,000+$500,000
= $25,00,000
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