Question

Parent Co. acquires 80% of Subsidiary Co. for

Q: Answer-Parent Co. acquires 80% of Subsidiary Co. for ₹16,00,000 when Subsidiary’s net assets are ₹15,00,000...

MI 20 15,00,000 3,00,000. Total consideration MI 16,00,000 3,00,000 19,00,000. Goodwill 19,00,000 15,00,000 4,00,000.

₹16,00,000 when Subsidiary’s net assets are ₹15,00,000. At acquisition, the fair value of minority interest equals its proportionate share of net assets. Calculate goodwill and minority interest.

A Goodwill ₹1,00,000; MI ₹3,00,000

B Goodwill ₹4,00,000; MI ₹3,00,000

C Goodwill ₹4,00,000; MI ₹4,00,000

D Goodwill ₹1,00,000; MI ₹4,00,000

E None

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Parent Co. acquires 80% of Subsidiary Co. for

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