Jack acquired 80% of the voting equity shares of Jill. Jill had the following equity at the date of acquisition.  $                            Ordinary share $1                                    1,000,000

SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter18: Comparative Forms Of Doing Business
Section: Chapter Questions
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Jack acquired 80% of the voting equity shares of Jill. Jill had the following equity at the date of acquisition. 

$

                           Ordinary share $1                                    1,000,000

 

                             Retained Earnings                                      800,000

 

The cost of the investment was $1,500,000 and the fair value of the non-controlling interest at acquisition was $360,000. 

What was the goodwill on acquisition of Jill?

Select one:
a.

$420,000

b.

$60,000

c.

$300,000

d.

$48,000

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