FARE p.94 #5 Error

The question says Pappy, Corp. acquired 80% of the outstanding c/s of Sibb Co. for $1,440,000 for cash. The fair value of the noncontrolling interest was determined to be $310,000.

To find out the FV of the consideration, we added up the two given values, $1,440,000 (80%) + NCI (20%) 310,000, that gives $1,750,000.

Error: 80% of 1,750,00 equals 1,400,000  not 1,440,000 and 20% of it is $350,000 not 310,000; $1,440,000 is about 82% of  $1,750,000.

I know the concept. I just let you know the error.

Where did this question come from? BISK? 

 


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CAS Director

Fairvalue of Sibb = 1,440,000 + 310,000 = 1,750,000
Fairvalue os Sibb's net asset = 1,080,000 + 290,000 = 1,370,000
위 두 금액의 차이가 Goodwill 이 됩니다.(380,000)


cpaprep

Goodwill를 계산하지 못해서 질문난에 쓴것이 아니라, 문제자체에 계산상의 오류가 있슴을 지적한것입니다. 다음 edition엔 이런 오류들을 수정하시기 바라는 마음이였는데~