pick from the multiple choice

Under the full goodwill method, a control premium is recognisedwhen:

	a.	the parent paid more than the fair value for the shares theyacquired.
	b.	the parent paid less than the fair value for the shares theyacquired.
	c.	the consideration transferred by the parent is more than thefair value of the identifiable net assets acquired.
	d.	the consideration transferred by the parent is less than thefair value of the identifiable net assets acquired.

Fredericks Limited acquired the identifiable assets andliabilities of Nicole Limited for $134 000. The items acquired,stated at fair value, are: plant $72 000; inventories $40 000;accounts receivable $18 000; patents $10 000; accounts payable $16000. The difference on acquisition is:

	a.	gain on bargain purchase $10 000.
	b.	gain on bargain purchase $16 000.
	c.	goodwill of $10 000.
	d.	goodwill of $124 000.

Xana Limited paid $110 000 for 60% of the shares in YamaLimited. At the date of acquisition Yama Limited had share capitalof $100 000 and retained earnings of $36 000 and all of YamaLimited’s assets and liabilities were recorded at fair value,except for land that was recorded at an amount less than the fairvalue by $20 000. The company tax rate was 30%. The fair value ofidentifiable net assets acquired by Xana Limited amounted to:

	a.	$60 000.
	b.	$90 000.
	c.	$110 000.
	d.	$150 000.