Victoria Corp acquired 80 per cent of the share capital of Whitehorse Corp on 1 July 2019. As at the date of acquisition, Whitehorse’s retained earnings was $40,000. On this date, the fair value of the 20% non-controlling interest in Whitehorse was $25,000. Ignore the tax rate.

The statements of the financial position of Victoria Corp and Whitehorse Corp as at 30 June 2020 are as follows:

Victoria Corp

($)

Whitehorse Corp

($)

Current assets 320,000 168,000
Non-current assets:
Property, plant and equipment 190,000 36,000
Investment (in Whitehorse) 100,000
290,000 36,000
610,000 204,000
Current liabilities 270,000 94,000
Shareholders’ equity:
Share capital 200,000 60,000
Retained earnings 140,000 50,000
610,000 204,000

Required:

(a) Calculate the amount of goodwill arising from the acquisition of Whitehorse Corp. Clearly show your workings.

(b) Based on the information provided above, calculate the non-controlling interests as at 30 June 2020. Clearly show your workings.

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