24. Venus Co acquired 75% of Mercury Co’s 100,000 $1 ordinary share capital on 1 November 2011. The consideration consisted of $2 cash per share and 1 share in Venus Co for every 1 share acquired in Mercury Co.
Venus Co shares have a nominal value of $1 and a fair value of $1.75. The fair value of the non-controlling interest was $82,000 and the fair value of net assets acquired was $215,500.
What should be recorded as goodwill on acquisition of Venus Co in the consolidated financial statements?
$63,375
$147,750
$91,500
$16,500
ACCA Forums
FAplease provide solution
13y ago#2Agreed
Hi Sir,
In your lecture, you mentioned need to deduct the share capital of subsidiary. May i know why in this case we do not need to deduct the share capital of Mercury, which in this case is (100k shares X 1usd = 100k usd)? therefore the answer i get is 47750 usd.
4y ago#4@AbrahamChinYuan - you need to ask on the FA tutor forum - you can ask the same question there and reference to this post https://opentuition.com/topic/please-provide-solution
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