Question

Parent Co. acquires 80% of Subsidiary Co. for ₹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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