Calculation of Goodwill from consolidation

BBamma9y ago

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.

John MoffatTutor9y ago#1

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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