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P investment in S is $68000 and S share capital per $1 is $50,000.Before the acquisition the value per share of S was $1.6.P acquired 75% of shares in S.
Good will
Consideration transferred 68000
Fair value(12500*$1.60) 20000
Net assets of S at acquisition(50000+15000) (65000)
Goodwill =23000Now i am thinking how that 12500 share calculation came from ?? The non controlling interest is 25% means that means $68000/1.6=42500 shares and 42500*25%=10625 shares right ?Can someone please explain this?
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Share Capital of S per $1 is 50,000, so that means there are 50,000 shares.
NCI’s shares are 25% of 50,000, which is 12,500 shares.
@suf23 said:
Share Capital of S per $1 is 50,000, so that means there are 50,000 shares.NCI’s shares are 25% of 50,000, which is 12,500 shares.
All clear mate thanks for the clarification 🙂
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