Good Will Calculation (I Think Error In Kaplan Book)

ZAZeeshan Afzal8y ago

Dear Sir, I am attempting test your understanding No 1 of FR Kaplan Book Chapter No. 17 Where Cost of investment is 65000 but in answer of TYU 1 they use fair value to investment 60000 instead of 65000 so i am unable to understand why and how they used 60000 instead of 65000 kindly guide me in this regard. thank you so much in advance

P2-D2Tutor8y ago#1

Hi, Could you please copy out the question? I don't have the Kaplan materials at the moment. Thanks

P2-D2Tutor7y ago#2

Hi, The negative goodwill will increase profit. Remember that credits increase liabilities, income and capital. Thanks

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