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Jabba Ltd Acquired a 70 Per Cent Interest in Han

Question 3

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Jabba Ltd acquired a 70 per cent interest in Han Ltd on 30 June 2012 for $2,000,000.On the same date,Han Ltd acquired a 60 per cent interest in Leia Ltd for a cash consideration of $1,600,000.The purchase price represents the fair value of consideration transferred for both investments. The share capital and retained earnings at the date of acquisition are as follows:
Jabba Ltd acquired a 70 per cent interest in Han Ltd on 30 June 2012 for $2,000,000.On the same date,Han Ltd acquired a 60 per cent interest in Leia Ltd for a cash consideration of $1,600,000.The purchase price represents the fair value of consideration transferred for both investments. The share capital and retained earnings at the date of acquisition are as follows:   What is the non-controlling interest in Han Ltd and Leai Ltd,respectively on the date of acquisition using the full goodwill method (round to the nearest dollar) ? A)  $780,000; $960,000; B)  $857,143; 1,066,667; C)  $1,820,000; $1,440,000 D)  $2,000,000; $1,600,000; E)  $2,857,143; $2,666,667. What is the non-controlling interest in Han Ltd and Leai Ltd,respectively on the date of acquisition using the full goodwill method (round to the nearest dollar) ?


A) $780,000; $960,000;
B) $857,143; 1,066,667;
C) $1,820,000; $1,440,000
D) $2,000,000; $1,600,000;
E) $2,857,143; $2,666,667.

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