ACCOUNTING 311 Harry purchases 80% of David by paying $50 a share for 40,000 of David
Question # 00293345
Posted By:
Updated on: 05/22/2016 05:41 PM Due on: 06/21/2016
23. Harry purchases 80% of David by paying $50 a share for 40,000 of David.
The remaining 10,000 shares of David are held by minority shareholders and
are worth $40 per share both before and after the acquisition. Assume that
100% of the FVNAA of David at date of acquisition is $2,200,000.
a. Calculate goodwill
b. How much goodwill is allocated to the controlling interest and how much to the
non-controlling interest
The remaining 10,000 shares of David are held by minority shareholders and
are worth $40 per share both before and after the acquisition. Assume that
100% of the FVNAA of David at date of acquisition is $2,200,000.
a. Calculate goodwill
b. How much goodwill is allocated to the controlling interest and how much to the
non-controlling interest
-
Rating:
/5
Solution: ACCOUNTING 311 Harry purchases 80% of David by paying $50 a share for 40,000 of David