I n t e r a c t I v e t e X t foundations in Accountancy/ acca financial accounting (ffa/FA) bpp learning Media is an acca approved Content Provider

What is the goodwill arising on consolidation?  

A $64,000 

B $123,000 

C $164,000 

D $184,000 

(2 marks) 

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           PRACTICE QUESTION BANK 

 

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92 

Alpha Co acquired 80% of all the share capital of Beta Co on 1 January 20X1. The consideration 

given was $500,000. On 1 January the fair value of Beta Co's net tangible assets was $450,000 

and the fair value of the non-controlling interest was $125,000. 

At 31 December 20X1 the fair value of the net tangible assets of Beta Co is $600,000.  

What is the amount of goodwill to be entered in the consolidated accounts? 

A $25,000 

B $50,000 

C $175,000 

D $265,000 

(2 marks) 

93 

Vaynor Co acquired 100% of the ordinary shares in Weeton Co and Yarlet Co some years ago. 

Extracts from the statements of financial position of the 3 companies as on 30 September 20X7 

were as follows. 

 

Vaynor Co 

Weeton Co 

Yarlet Co 

 $'000 

$'000 

$'000 

Retained earnings 

90 

40 

70 

At acquisition Weeton Co had retained losses of $10,000 and Yarlet Co had retained earnings of 

$30,000.