Accounting · Business Combinations - Goodwill Calculation
Select the formula that correctly calculates goodwill on the acquisition of a subsidiary, where Consideration Transferred is $300,000, Non-controlling Interest is $80,000, and Net Identifiable Assets consist of Share Capital $60,000, Retained Earnings $150,000, and Fair Value Adjustment $30,000.
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1$300,000 + $80,000 - ($60,000 + $150,000 + $30,000)✓
- 2$300,000 + $80,000 - ($70,000 + $150,000 + $30,000)
- 3$300,000 + $80,000 - ($70,000 + $150,000 - $30,000)
- 4$300,000 - $80,000 + ($60,000 + $150,000 + $30,000)
Correct answer
$300,000 + $80,000 - ($60,000 + $150,000 + $30,000)
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