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west co. acquired 90 per cent of the 100 000 share in East co. on 1 January 20X7 for $480,000 when the reserves of that company amounted to $320,000. On that date the fair value of the non-controlling interest was valued at $45,000. Included in East Co’s statement of financial position was land with a book value of $60,000. The fair value was $30,000 higher than this. West Co. group measures the non-controlling interest at fair value. What goodwill arose on the non-controlling interest of East Co?
The working as per below:
Consideration transfer-$480,000+ FV of NCI $45,000-FV of net asset(100K+30K+320K) $450,000 = $75,000.Sir, can u explain how to get the 100K which was included in calculation FV of net asset.
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