Intercorporate investments pg73 ques 27 1070, 320, understood, allocated, purchase

dyga

Has anyone reached n understood question 27? I did not get the excess purchase price allocated to licenses. According to my calculation it’s purchase price 320 mill - 50%of boswells net assets (1070 - 490 = 580 * 50%)=290 which equals 30 mill. Please explain

disiz64

read the book my friend in that country!!!

RealEstate_CFA

post the question my friend in this country

slackeranalyst

30 Mill is the Goodwill when 50% of the company was owned by Boswell. With the full company owned - the Goodwill would become 60 Mil.

kmf229

30 mill = 50%
so 100% = 60 mill…
if I remember correctly.