Using the fair value to measure no controlling interest

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On January 1, 2014, A company acquired 60% of the outstanding shares of B company by paying $1.2 Million in cash, the fair value of B's identifiable asset and liability is $2 million and $ 0.5 million respectively.

Requirements: Determine the following amounts at which A company should recognize goodwill from this business combination.

1) Using the proportionate share of acquired firm's net assets to measure non-controlling interest.

2) Using the fair value to measure no controlling interest.

Reference no: EM13754508

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