Goodwill

27. Peter acquired 70% of the share capital of Paul on 1 January 2009 for $120,000, on which date the retained earnings of Paul stood at $36,000.
The fair value of the non-controlling interest at the date of acquisition was $96,000.
On 31 December 2011 the company’s Statements of Financial Position were as follows:
Peter

Paul
Non-current assets
300,000
180,000
Investment in Paul, at cost
120,000
Current assets
72,000

36,000
492,000

216,000
Share capital – $1 shares
288,000
120,000
Retained earnings
156,000
76,800
Current liabilities
48,000

19,200
492,000

216,000
What amount should appear for non-controlling interest in the consolidated statement of financial position?
$108,240 (Correct answer)
$59,040
$12,240
$112,560