Hello, can you help me with this question, please. You are required to:A) Calculate the goodwill at acquisitionB) Calculate the Goodwill at acquisition with fair value of NCIC) Prepare consolidated statements of financial position of Tower Plc Group as atDecember 31, 2015, on the assumption that non - controlling interest is valued at thefair value. B) The statements of financial position of Tower Plc and Holborn Plc as atDecember 31, 2015 were as follows:Tower PLCHolborn PLC£'Million9,0005,0002,00016,000£'Million5,000Property Plant & EquipmentInvestment in Tower PlcOther Assets1,5006,500500ShareCapitalRetained EarningsOther Liabilities50014,50010005,0001,0006,50016,000Tower Plc acquired 80% equity interest in Holborn Plc two (2) years ago.At the date of acquisition Tower's retained earnings stood at £3million and the fair valueof its net assets was £5million. This was £1.5million above the carrying amount of the netassets at this date. The fair value adjustment related to an asset that had a remaininguseful economic life of 10 years as at the date of acquisition. The goodwill arising onconsolidation has not suffered any impairment.

Basic Information : Tower PLC acquired 80% equity interest in Holborn PLC. Acquiring company : Tower…

A) Calculate the goodwill at acquisition B) Calculate the Goodwill at acquisition with fair value of NCI C) Prepare consolidated statements of financial position of Tower Plc Group as at December 31, 2015, on the assumption that non - controlling interest is valued at the fair value.

A) Calculate the goodwill at acquisition B) Calculate the Goodwill at acquisition with fair value of NCI C) Prepare consolidated statements of financial position of Tower Plc Group as at December 31, 2015, on the assumption that non - controlling interest is valued at the fair value.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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