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Hello sir,
In question 2 of the goodwill mini exercises, you ret ear for 4 months was 4,500, can you please explain as l got 27,500 (4/12*82.5m)
Also in question 3 of same, l still had issue with the ret ear and wasn’t sure why you took the parent’s share of 60% in your goodwill cal here.
Thanks
Suzanna didn’t make $82.5 million in the one year – that figure represents the accumulated retained earnings for Suzanna since Suzanna’s incorporation in 1896
But we know that the retained earnings at the end of last year were $69 million and at the end of this year the figure is $82.5 so during the year ended 28 February, 2011 Suzanna achieved just $13.5 million
Is that better?
The top line tells us that “… Patricija acquired 60% …”
Does that explain it?
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