(Answered) Question - harry purchases 80 of david by paying 50 a share

Accounting

Question - Harry purchases 80% of David by paying $50 a share for 40,000 of David. The remaining 10,000 shares of David are held by minority shareholders and are worth $40 per share both before and after the acquisition. Assume that 100% of the FVNAA of David at date of acquisition is $2,200,000.

a. Calculate goodwill.

b. How much goodwill is allocated to the controlling interest and how much to the non-controlling interest?

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