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ABC Co. and XYZ, Inc. both engage in the same business. On January 1, 2021,...

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Accounting

ABC Co. and XYZ, Inc. both engage in the same business. On January 1, 2021, ABC and XYZ signed a contract, the terms of which resulted in ABC obtaining control over XYZ without any transfer of consideration between the parties. The fair value of the identifiable net assets of XYZ Inc. on January 1, 2021 is ?4,000,000. XYZ chose to measure non-controlling interest at the non-controlling interest's proportionate share of the acquiree's identifiable net assets.



How much is the goodwill?

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