Homework Answers
| Calculation of goodwill on acquisition | ||
| Sr. No. | Particulars | Amount |
| 1 | Current Asset | 10,000.00 |
| 2 | Property Plant and Equipment | 60,000.00 |
| Less: overvaluation | (7,000.00) | |
| 3 | Intangibles | 8,000.00 |
| 4 | Liabilities | (57,500.00) |
| 5 | Treasury Stock | 100.00 |
| 6 | Dividends | 500.00 |
| 7 | Net Assets | 14,100.00 |
| Assets Shared as follows | ||
| 8 | Pacer Hotels (80%) (7*.80) | 11,280.00 |
| 9 | Non controlling Interest (NCI) (7*.20) | 2,820.00 |
| Consideration Paid/Fair Value- | ||
| 10 | Pacer Hotels (80%) | 35,000.00 |
| 11 | Non controlling Interest (NCI) | 7,000.00 |
| Valuation of Goodwill | ||
| 12 | Pacer Hotels (80%) (10-8) | 23,720.00 |
| 13 | Non controlling Interest (NCI) (11-9) | 4,180.00 |
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Part A
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Please show all work.
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Please show all work.
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