19831985

Dreary Wrote:
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> Correction:
>
> Bought 90% of company with net assets BV = $1.2M,
> FV=$1.5M, but FV at acquisition date = $1.6M, and
> paid $500k.
>
> Goodwill under acquisition method = $1.6M-$1.5M =
> $100k.
>
> This is similar to Example 9, page 44 of FRA,
> where they ignored the 90% acquisition!
> Can someone summarize how you account for
> goodwill?


Goodwill under acquisition.
Under Partial Goodwill
500k - 0.90 x 1.5 = 50k

Under Full Goodwill
1.6-1.5 = 100k