Gce Model Questions Vol1 2019 Financial Accounting Question 11
Practice objective / multiple choice question 11 from the 2019 Gce Model Questions Vol1 Financial Accounting examination.
Company A acquires 80 % of Company B for \(£480,000\). The fair value of the identifiable net assets of B is \(£500,000\), comprising plant at \(£300,000\) (depreciated to \(£200,000\)), inventory \(£80,000\), receivables \(£70,000\) and liabilities \(£50,000\). The tax base of the plant is \(£250,000\), giving a temporary difference of \(£50,000\). The corporate tax rate is \(30\%\). Calculate the amount of goodwill recognised in the consolidated balance sheet.
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About This Question
This is Gce Model Questions Vol1 2019 Financial Accounting Question 11. It is one of the objective questions from the 2019 Gce Model Questions Vol1 Financial Accounting examination.
Difficulty level: Hard .
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