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Dear Sir,
I am having trouble understanding the question 38 in BPP practice book as follow:
On 1 Jan 2015, Exotic acquired 90% share capital in Melon with $6,650,000.
On 1 Jan 2017, Melon acquired 80% share in Kiwi with $3,800,000.
And the answer as follow:
Goodwill: Melon Kiwi
Consideration transferred: 6,650,000 (3,800,000*90%) 3,420,000
I don’t understand this calculation of (3,800,000*90%) 3,420,000. Why it is 90% and why not add 3,800,000 right to consideration transferred for kiwi?Thank you Sir
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