How much is the goodwill

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Question - ELLE Co. and MAX, Inc. both engage in the same business. On January 1, 2016, ELLE and MAX signed a contract, the terms of which resulted in ELLE obtaining control over MAX without any transfer of consideration between the parties. The fair value of the identifiable net assets of MAX Inc. on January 1, 2016 is 4,000,000. MAX chose to measure non-controlling interest at the non-controlling interest's proportionate share of the acquiree's identifiable net assets. How much is the goodwill?

Reference no: EM133125307

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