consolidated statement of financial position

Not really - sorry!

so how do we know for sure if we are calculating it correctly

You have to learn the rules - obviously you don't know for any of the questions in the exam whether or not you have got the answer right!!

Tempo Co acquired 100% of the equity shares capital of Lento Co. This consisted of 40,000 shares of $0.50 each. It paid for the acquisition by issuing 60,000 new shares of $1 each in Tempo Co, and exchanging three new shares in Tempo Co for every 2 shares in Lento Co. The market value of Tempo Co shares at the time of the acquisition was $3.50 per share. The fair value of the net assets acquired in Lento Co was $50,000. What was the goodwill arising on the acquisition of the shares in Lento Co by Tempo Co? A $10,000 B $40,000 C $140,000 D $160,000 ______________________________________________________________________ Hi sir, please help me to find a route to solving this one :)

I am guessing that you found this in a Kaplan book and they should not really have included it - paying the consideration in shares isn't really F3 but F7. However, the value of what Tempo is paying is 60,000 shares that are each worth $3.50, which is a total of $210,000. From then on, everything is exactly the same as if they had paid cash of $210,000. So.......the goodwill = 210,000 (consideration) - $50,000 (value of net assets) = $160,000