NCI Question

$193,125 BUT ONLY IF the acquisition of B took place on day 1 of the accounting year and no dividend had been paid / proposed by B (you haven't given me full information!)

In working W3, in the top section, we have the retained earnings as at today In the lower section we have retained earnings as at date of acquisition In your question, as at today we would show "fair value adjustment $250,000, Depreciation on fair value adjustment $6,250" and in the bottom section we would show "fair value adjustment $250,000" So, you see, the only difference is the depreciation. In fact both Kaplan and BPP show just the change ie just the depreciation (sometimes) but I prefer to show both - as at now and as at date of acquisition OK?

Glad to have been able to help :-) - now you can enjoy the week ahead!