consolidation

P acquired 75% of the share capital of S on its incorporation. The Statements of Financial Position of the two entities as at 31 December 2010 are as follows:

Investment in S at cost $15,000
share capital in s $20,000
find goodwill.

Your formula says:
P cost of investment 75% = $15,000
fair value of non controlling interest 25%/75% X $15000 = $5000
therefore $15000 + $5000 = $20,000
retained earnings =$0
$20,000 – Share capital of S $20,000 = 0
therefore goodwill = 0

Sir, where you not supposed to deduct the $5000 from share capital of S $20,000 =$15,000 =( $15000-$15000 =$0) you added the $5000 to the cost of investment.