Bravo CO purchased 75% of the voting equity shares of Fleet CO when the value of the non-controlling interest in Fleet CO is $160,000.
The following information relates to Fleet at the acquisition date.
| Fleet CO | At acquisition |
| Share Capital, $0.5 ordinary shares | 100,000 |
| Retained Earnings | 240,000 |
| Revaluation surplus | 80,000 |
| Total : | 420,000 |
The Goodwill arising on acquistion is $300,000. What was the consideration paid by Bravo CO for the investment in Fleet CO?
Suggested solutions:
| Consideration | C |
| plus NCI | 160,000 |
| Less Share Capital | 100,000 |
| Retained Earnings | 240000 |
| Revaluation Surplus | 80,000 |
| Equals Goodwill | 300,000 |
Solve C, the answer is $ 560,000.
To do the same topic again in ACCA F3 consolidated consideration
To do another topic in ACCA F3
2015 ACCA F3 CONSOLIDATED CONSIDERATION