On 1 July 20X8 Berardo Ltd acquired 25% of the ordinary issued share capital of Ricky Ltd for $375 000. This investment gave rise to significant influence.
The share capital and reserves of Ricky Ltd at 1 July 20X8 were:
$\begin{array}{ll}&\$\
\text { Share capital } & 400,000 \
\text { General reserve } & 250,000 \
\text { Retained earnings } & 275,000\&925,000
\end{array}$
All the identifiable net assets of Ricky Ltd were stated at fair value at the date of acquisition except for a building whose carrying value was $50 000 less than the fair value. Goodwill arising on Berardo's acquisition of Ricky was:

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The Answer of On 1 July 20X8 Berardo Ltd acquired 25% of the ordinary issued share capital of Ricky Ltd for $375 000. This investment gave rise to significant influence.
The share capital and reserves of Ricky Ltd at 1 July 20X8 were:
$\begin{array}{ll}&\$\
\text { Share capital } & 400,000 \
\text { General reserve } & 250,000 \
\text { Retained earnings } & 275,000\&925,000
\end{array}$
All the identifiable net assets of Ricky Ltd were stated at fair value at the date of acquisition except for a building whose carrying value was $50 000 less than the fair value. Goodwill arising on Berardo's acquisition of Ricky was:

On 1 July 20X8 Berardo Ltd Acquired 25% of the Ordinary