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  3. p ltd acquired 75% of the issued ordinary shares o

P Ltd acquired 75% of the issued ordinary shares of YZ Ltd (a subsidiary) on...

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Accounting

P Ltd acquired 75% of the issued ordinary shares of YZ Ltd (a subsidiary) on 1 January 20X8 for 2,000,000 when the retained earnings of YZ Ltd amounted to 100,000. YZ Ltd has 1,500,000 of share capital and there has been no change of share capital since the date of acquisition. P Ltd adopts the partial approach to calculate goodwill.
Impairment loss of goodwill for 50,000 must be provided on 31 December 20X8.
The carrying amount of goodwill in the consolidated statement of financial position of P Ltd as of 31 December 20X8 is:
Question 7Answer
a.
400,000
b.
800,000
c.
None of the above
d.
750,000

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