A company pays $70 million in cash to acquire 70% of the voting stock of another company. The fair value of the non controlling interest at the date of acquisition is $25 million, and the book value of the acquired company is $20 million. There are no revaluations of the acquired company’s identifiable net assets. Goodwill allocated to the noncontrolling interest is:

Complete question:

A company pays $70 million in cash to acquire 70% of the voting stock of another company. The fair value of the non controlling interest at the date of acquisition is $25 million, and the book value of the acquired company is $20 million. There are no revaluations of the acquired company’s identifiable net assets. Goodwill allocated to the non-controlling interest is:

REQUIRED: Assuming U.S. GAAP is used.

a. Calculate the total goodwill

b. How much goodwill is allocated to the controlling interest? What percent of goodwill is allocated to the controlling interest?

c. How much goodwill is allocated to the non-controlling interest? What percent of goodwill is allocated to the non-controlling interest?

Solution:

a. Total goodwill = $70 million + $25 million - $20 million = $75 million

b. Goodwill to the controlling interest = $70 million - (70% x $20 million)

= $56 million Goodwill percent to the controlling interest = 75%

c. Goodwill to the non-controlling interest = $75 million - $56 million

= $19 million Goodwill percent to the non-controlling interest = 25%

being suspected of supplying drugs means you are much more likely to be charged. the amount of drugs found on you, and whether you have a criminal record, will be taken into account when a punishment is being decided.

decisions to prosecute are taken by the public prosecution service. the maximum sentences for intent to supply drugs are: