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483 Venus acquired 75% of Mercury’s 100,000 $1 equity shares on 1 November 20X4. The consideration comprised $2 cash per share plus one share in Venus for every share acquired in Mercury.
Shares in Venus have a nominal value of $1 and a fair value of $1.75. The fair value of the
non?controlling interest was $82,000 and the fair value of the net assets acquired was $215,500. What should be recorded as goodwill on acquisition of Mercury in the consolidated Mercury Group financial statements?Answer: 147,750
Hi, I found this question in the Kaplan exam kit, but I’m confused as to why the share capital of $100000 isn’t included in the Net assets of Mercury at the date of acquisition.
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