Earth Ltd acquired Moon Ltd on 1 July 2009 for the sum of $100 000.On the same date Moon Ltd has the following assets and liabilities: $$\begin{array} { | l | r | r | r | }
\hline & \mathbf { Carrying amount } & \mathbf { Recoverable~ amount } & \mathbf { Fair~ value } \
\hline \mathbf { Assets: } & & & \
\hline \text { Land } & 100000 & 130000 & 150000 \
\hline \text { Machinery } & 50000 & 30000 & 40000 \
\hline \text { Cash } & 20000 & & \
\hline\mathbf {Liabilities: } & & & \
\hline \text { Loan } & 105000 & & \
\hline \text { Contingent liabilities } & 80000 & & \
\hline
\end{array}$$ What is the value of goodwill,if any?

Question

Earth Ltd acquired Moon Ltd on 1 July 2009 for the sum of $100 000.On the same date Moon Ltd has the following assets and liabilities: $$\begin{array} { | l | r | r | r | } 
\hline & \mathbf { Carrying amount } & \mathbf { Recoverable~ amount } & \mathbf { Fair~ value } \
\hline \mathbf { Assets: } & & & \
\hline \text { Land } & 100000 & 130000 & 150000 \
\hline \text { Machinery } & 50000 & 30000 & 40000 \
\hline \text { Cash } & 20000 & & \
\hline\mathbf {Liabilities: } & & & \
\hline \text { Loan } & 105000 & & \
\hline \text { Contingent liabilities } & 80000 & & \
\hline
\end{array}$$ What is the value of goodwill,if any?

Quizplus · Accepted Answer

The Answer of Earth Ltd acquired Moon Ltd on 1 July 2009 for the sum of $100 000.On the same date Moon Ltd has the following assets and liabilities: $$\begin{array} { | l | r | r | r | } 
\hline & \mathbf { Carrying amount } & \mathbf { Recoverable~ amount } & \mathbf { Fair~ value } \
\hline \mathbf { Assets: } & & & \
\hline \text { Land } & 100000 & 130000 & 150000 \
\hline \text { Machinery } & 50000 & 30000 & 40000 \
\hline \text { Cash } & 20000 & & \
\hline\mathbf {Liabilities: } & & & \
\hline \text { Loan } & 105000 & & \
\hline \text { Contingent liabilities } & 80000 & & \
\hline
\end{array}$$ What is the value of goodwill,if any?

Earth Ltd Acquired Moon Ltd on 1 July 2009 for the Sum