Pasta acquired 100% of Sauce for $200. ...
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Accounting
| Pasta acquired 100% of Sauce for $200. |
| |||
| At acquisition date Sauce had equity of $170, comprised as follows: | ||||
|
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| Capital |
| 100 |
| |
| Asset revaluation reserve | 20 |
| ||
| Retained earnings |
| 50 |
| |
| Equity |
| 170 |
| |
| The book value of net assets was considered to be close to fair value, | ||||
| except for the following: |
| |||
| Cost | Carrying amount | Fair value |
| |
| Intangibles | 0 | 0 | 30 |
|
|
The tax rate is 30%. |
| |||
What is the amount of goodwill acquired by Pasta?
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