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Hi Sir,
Please help on the below…
Bradshaw purchased 18,520,000 $1 ord shares in Martin on 1Nov 2015 for $34,000,000.At that date retained earnings were $5,338,000.NCI is $7,408,000 at acquisition
My calculation is 34,000,000 add 7,408,000 less 5,338,000 less 18,520,000 equal to 17,550.
But the ans is 12,920.
I cant understand where am i wrong…
Can anyone please help.
Either you have not typed out the whole question, or the printed question has missed something out. You need to know the total number of shares in Martin – not just the shares that Bradshaw purchased.
So the calculation should be:
34,000,000 + 7,408,000 – 5,338,000 – total share capital of Martin.
(To end up with the answer of 12,920, the question should either tell you that the total share capital of Martin was 23,150,000 $1 shares, or more likely that Bradshaw has bought 80% of the shares (in which case you can calculate the total number of shares yourself))
(PS If you ask questions in this forum, then ‘anyone’ will always be me 🙂 )
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