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  3. graham limited acquired 90% of the share capital a

Graham Limited acquired 90% of the share capital and reserves of Terry Limited for $340,000....

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Accounting

Graham Limited acquired 90% of the share capital and reserves of Terry Limited for $340,000. Share capital was $200 000 and reserves amounted to $124 000. All assets and liabilities were recorded at fair value except equipment which was recorded at $60 000 below fair value. The company tax rate was 30%. The partial goodwill method is adopted by the group. The NCI share of equity at the date of acquisition was:

a.$34 000

b.$16 600

c.$38 400

d.$32 400

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