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You mentioned that the Fair Value of Non-Controlling Interest will normally be provided in the exam. If it doesn’t, did you say it is to be calculated as: 40/60 x 40,000 (in the example in the lecture).
If so, this doesn;t equal 30,000 as it stated in your example.
Clarity would be appreciative!
If the value is given (as it is here) then you use that value.
We would only take 40/60 x 40,000 if we were not given a true fair value, because we would be unable to continue otherwise. However there is no reason in real life why the true fair value should be 40/60 x 40,000 (a smaller holding is likely to have a lower value).
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