Goodwill on consolidation computation
Sunreel Co purchased 80% stake in Codfish Inc on 1st January, 20x0. The purchase amount involved cash of $500,000 with an additional amount, of $40,000 to be paid a year later. As at that date CodFish's share capital is $400,000 with retained earnings of $10,000.
Excess cash can be invested at 8% as at 1st January 20x0.
Calculate the goodwill purchased by Sunreel Co© SolutionLibrary Inc. solutionlibary.com 9836dcf9d7 https://solutionlibrary.com/business/finance/goodwill-on-consolidation-computation-jdj1