Fanta Co acquired 100% of the ordinary share capital of Tizer Co on 1 October 20X7. On 31 December 20X7 the share capital and retained earnings of Tizer Co were as follows: $'000 Ordinary shares of $1 each 400 Retained earnings at 1 January 20X7 100 Retained profit for the year ended 31 December 20X7 80 580 The profits of Tizer Co have accrued evenly throughout 20X7. Goodwill arising on the acquisition of Tizer Co was $30,000. What was the cost of the investment in Tizer Co?
A、$400,000
B、$580,000
C、$610,000
D、$590,000
A、$400,000
B、$580,000
C、$610,000
D、$590,000
【参考答案及解析】
$000 Fair value of net assets acquired: 400 Ordinary shares 100 Retained earnings at 1 January 20X7 60 Retained earnings for 9 months to acquisition date (80 x 9/12) 560 Add goodwill 30 590
$000 Fair value of net assets acquired: 400 Ordinary shares 100 Retained earnings at 1 January 20X7 60 Retained earnings for 9 months to acquisition date (80 x 9/12) 560 Add goodwill 30 590