[snehamaharja]

Thank u sir

[snehamaharja]

MN acquired 80% of the equity shares in LK on 1 January 20X6. The consideration for the acquisition consisted of the following

•Cash of $2.400,000 paid on 1 January 20X6

•Cash of $1,000,000 paid on 1 January 20X8 (a discount rate of 7% was applied to value the liability in the financial statements of MN) and

The transfer of 1500,000 shares in MN with a nominal value of $1 each and an agreed value on the date of acquisition of $2 each

The best estimate of the fair value of the consideration to be included in the calculation of goodwill arising on the acquisition of LK?

Excuse me sir ,
Can you give me some idea how to solve this question ??

[snehamaharja]

Sir , the revaluation surplus does take part in profit or loss on disposal right !
And in book there is ans (450000 – 110000)= 140000.
Sir I know 450000 is from question But I don’t understand how 110000 came ?
Can please explain this to me ?

[Author]

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