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Domestic acquired 80% of the ordinary share capital of Foreign on 01/01/x6. Domestic presentational currency...

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Accounting

Domestic acquired 80% of the ordinary share capital of Foreign on 01/01/x6. Domestic presentational currency is the Rand, while Foreign has a presentation currency of $. the total cost of acquisition of the above stake was R900 000, while the exchange rate at acquisition was $1.8:R1. The fair value of NCI on the date of acquisition was $250 000 with the groups policy being to value NCI at fair value. The fair value of net asset on date of acquisition was $1 000 000. Calculate the exchange rate gain or loss arising on the translation of goodwill to be included in the consolidated statement of other comprehensive income for the year ended 31/12/x6. The exchange rate at this year is $1.9:R1. Show your answer to the nearest R and denote a gain or loss.

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