FAC2602 COMPLETE ANSWERS
COMPLETE ANSWERS
QUESTION 1: FULL SOLUTION (19 MARKS)
Net Assets at Acquisition:
Share capital = 720,000
Retained earnings = 2,185,000
Revaluation surplus = 1,265,000
Subtotal = 4,170,000
FV uplift (land) = 996,500 – 750,000 = 246,500
Total NAV = 4,416,500
Goodwill Calculation:
COMPLETE ANSWERS
QUESTION 1: FULL SOLUTION (19 MARKS)
Net Assets at Acquisition:
Share capital = 720,000
Retained earnings = 2,185,000
Revaluation surplus = 1,265,000
Subtotal = 4,170,000
FV uplift (land) = 996,500 – 750,000 = 246,500
Total NAV = 4,416,500
Goodwill Calculation: