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What the goodwill to be recognised on consolidation

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Reference no: EM133008720

Question - On 1 July 2019 High Ltd acquired a 100% interest in Low Ltd. At that time Low Ltd had goodwill of $6,000 recorded in its statement of financial position as a result of a previous business combination. The total goodwill arising on High's acquisition of Low was $10,000. What the goodwill to be recognised on consolidation as a result of High's acquisition of Low?

a. $6,000

b. $4,000

c. $10,000

d. $16,000

Reference no: EM133008720

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