What amount of goodwill should be attributed to the non-controlling interest according to the acquisition method per SFAS 141(R)?

Question

Quizplus · Accepted Answer

Under the acquisition method per SFAS 141(R), the goodwill is determined as the excess of the consideration transferred plus any noncontrolling interest over the fair value of the identifiable net assets acquired.

Consideration transferred plus noncontrolling interest = $1,000,000 + $100,000 = $1,100,000

Fair value of identifiable net assets = $800,000

Goodwill = $1,100,000 - $800,000 = $300,000

Goodwill attributable to noncontrolling interest = Noncontrolling interest / Total goodwill x Goodwill

= $100,000 / $300,000 x $300,000 
= $100,000

Therefore, the goodwill attributed to the noncontrolling interest is $30,000.

What Amount of Goodwill Should Be Attributed to the Non-Controlling