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Question 24.Q2: On 31 December 20X8 Pandora Co acquired 4 million of the 5 m...

On 31 December 20X8 Pandora Co acquired 4 million of the 5 million $1 ordinary shares of Sylvester Co, paying $10m cash. On that date the fair value of Sylvester’s net assets was $7.5m.
The market price of the shares held by the non-controlling shareholders just before the acquisition was $2.00. What is goodwill in the consolidated statement of financial position?
.     $’000
A  2,000
B  2,500
C  4,000
D  4,500

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D

$000
Fair value of consideration transferred 10,000
Fair value of NCI ($2 × 1m) 2,000
12,000
Less net acquisition-date fair value of identifiable
assets acquired and liabilities assumed		 (7,500)
Goodwill 4,500

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