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:
|Property, plant and equipment||190,000||36,000|
|Investment (in Whitehorse)||100,000||–|
(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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