ABC Entity Acquired XYZ Entity Buy Purchasing 18,750 of XYZ's

Essay

ABC Entity acquired XYZ Entity buy purchasing 18,750 of XYZ's 25,000 shares for $375,000 in cash. The fair value of the net identifiable assets of XYZ is $400,000. The trading price on the date of acquisition is $20 per share. Determine the goodwill to be recognized and the amount to be allocated to the NCI under the fair value method and the NCI's share of the acquiree's identifiable net assets method.