ACCOUNTING-Harry purchases 80% of David by paying $50 a share for 40,000 of David
Question # 00122655
Posted By:
Updated on: 10/23/2015 08:24 PM Due on: 11/22/2015
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.
- Calculate goodwill
- How much goodwill is allocated to the controlling interest and how much to the non-controlling interest
-
Rating:
/5
Solution: ACCOUNTING-Harry purchases 80% of David by paying $50 a share for 40,000 of David