Job Co acquired 90% of the 1 000 000 ordinary shares of Sid Co on 1 October 20X7 The…

Job Co acquired 90% of the 1 000 000 ordinary shares of Sid Co on 1 October 20X7 The…

Question:

 

Transcribed Image Text:

Job Co acquired 90% of the 1 000 000 ordinary shares of Sid Co on 1 October 20X7 The
consideration consisted of $5 million in cash and 400 000 equity shares of Job Co each of which
had a market value of 290 cents. On 1 October the fair value of Sid Co’s net assets was $5
million Job Co measures non-controlling interests at their proportionate share of the
subsidiary’s net assets
What is the amount of goodwill on acquisition to be accounted for in Job Co’s consolidated
accounts at the date of acquisition?
[]
1
1
1
$1 160 000
$ 500 000
$1 660 000
$1 450 000

Expert Answer:

Answer rating: 100% (QA)

To calculate the amount of goodwill on acquisition we need to determine the fair
View the full answer