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i am attempting a question Rod, Reel and Line
BPP Q30The consideration transfer was computed as (100×80%) in Line kindly explain
Sorry, but that’s the publisher’s way of calculating the goodwill / consideration.
My way is different – and I believe easier.
The text book takes the view that only 80% of the cost of the acquisition relates to Rod ( the other 20% relates to the nci in Reel.
The publishers are consistent in their approach. So am I. and I still think my way is easier.
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