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Sir, in the BPP revision kit, question number 25.3 Prestend how do we find the correct formula for goodwill?
The calculation of goodwill is always the same.
It is the consideration paid (3,345) plus the fair value of the NCI (1,415), less the share capital (4,000) plus the retained earnings at the date of acquisition (60).
So the answer is A.
Have you watched my free lectures on consolidations? The lectures are a complete free course for Paper FA and cover everything needed to be able to pass the exam well.
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