Noosa Ltd acquired a business from Tewantin Ltd on 1 January 2011.At this date,the fair value of the consideration transferred was $1 500 000.The fair value of the identifiable assets acquired was $1 480 000,while the fair value of the liabilities assumed amounted to $80 000.The value of goodwill recognised by Noosa Ltd at the date of acquisition was:

Question

Quizplus · Accepted Answer

The value of goodwill is calculated as the fair value of the consideration transferred ($1,500,000) minus the net assets acquired (fair value of identifiable assets acquired $1,480,000 minus fair value of liabilities assumed $80,000). This calculation results in goodwill of $100,000.

Noosa Ltd Acquired a Business from Tewantin Ltd on 1