Calculate the value of goodwill in the acquisition

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Problem 1: Mask, a private limited company, has arranged for Man, a public limited company, to acquire it as a means of  obtaining a stock exchange listing. Man issues 15 million shares to acquire the whole of the share capital of Mask (6  million shares). The fair value of the net assets of Mask and Man are P30 million and P 18 million respectively. The fair  value of each of the shares of Mask is P6 and the quoted market price of Man's shares is P2. The share capital of Man is  25 million shares after the acquisition. Calculate the value of goodwill in the above acquisition.

Reference no: EM132665709

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