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


(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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