Essay
Fillington Inc. acquired a 75% shareholding in Donhenry Ltd. for $20 million. Book value of net identifiable assets of Donhenry is $14 million. The fair value of Donhenry's asset is the same as their book value except accounts receivables, which are impaired by $1 million. Book value of assets is $54 million while book value of liabilities is $40 million. The NCI has been valued at $5 million. The tax rate is 30%.
Required:
Calculate goodwill using the full goodwill method.
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Acquisition Analysis:
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