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How much goodwill on consolidation will be recorded

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Reference no: EM131797047

Problem

Parent Ltd acquired all the issued shares of Subsidiary Ltd on 30th June 2014 for $95604. At that date Subsidiary Ltd's shareholders equity comprised:

Share capital $50000
Retained earnings $20000

All of Subsidiary Ltd's assets and liabilities were recorded at fair value except for inventory which had a carrying amount of $10000 and a fair value of $15000. The tax rate is 30%.

How much goodwill on consolidation will be recorded by Parent Ltd's consolidated financial statements as at 30th June 2014?

Reference no: EM131797047

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