David Ltd purchases a 100 per cent interest in Roger Ltd. The cost of the...
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Accounting
David Ltd purchases a 100 per cent interest in Roger Ltd. The cost of the acquisition is $1 500 000 plus associated legal costs of $80 000. As at the date of acquisition, the statement of financial position of RogerLtd showsnet assets $5,000,000.
Determine, for accounting purposes, the amount of goodwill that has been acquired by Roger Ltd.
a.
$40000
b.
$35000
c.
None of the answers given
d.
$30000
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