Kaplan Chapter 2 – Complex Group Illustration 1

Hello,

is anyone else using this book? If so I am confused slighlty with the worked example David, Colin and John. In working out the Goodwill the cost of investment in the sub subsidiary says it is $60k (75% of £80k) the 75% is the group interest I get that but I dont get the $80k. It says it accquired 40,000 $1 shares in John? is it the net assets at reporting date of John that you take?

Any light on this would be great – thanks!