How can we calculate goodwill if no fair value of non-controlling interest (NCI) is given?
Question Given: Tong acquired 100% of the $100,000 ordinary share capital of Cheek for $1 200 000 on 1 January 20×5 when the retained earnings of Cheek were $550 000 and the balance on the revaluation was $150 000. At the date of acquisition the fair value of plant held by Cheek was $80 000 higher than his carrying value.
What is the goodwill arising on the acquisition of Cheek?