Reference no: EM133017444

Question - Piccolo Ltd acquired 20% of Organ Ltd on 1 July 2013 for $234,000.

At the date of acquisition the equity of Organ is:

Share Capital: $66,000

Retained earnings: $79,000

OTHER INFO:

-At DOA, machinery in Organ's books was recorded at $110,000 below its fair value ($160,000), and inventory was recorded at $52,000 below its fair value ($70,000).

-The machinery can be used for two years and then scrapped. The inventory in Organ had been sold by Organ by June 2014.

-Dividends declared at 30 June are paid within 3 months.

-In Jan 2016, Organ Ltd revalued furniture upwards by $6,000, affect revaluation surplus by $4,200.

Required - Determine the goodwill arising on the acquisition of Organ.