On 1 July 2021 Barry Ltd Acquired 25% of the Ordinary

question 2

Multiple Choice

On 1 July 2021 Barry Ltd acquired 25% of the ordinary issued share capital of Charlie Ltd for $300 000. This investment gave rise to significant influence. The share capital and reserves of Charlie Ltd at 1 July 2021 were:
$$\begin{array} { | l | r | } \hline \text { Share capital } & \$ 500000 \\\hline \text { General reserve } & 200000 \\\hline \text { Retained earnings } & 384000 \\\hline & \$ 1084000 \\\hline\end{array}$$ All the identifiable net assets of Charlie Ltd were stated at fair value at the date of acquisition except for equipment whose carrying value was $30 000 less than the fair value. The tax rate is 30%. Goodwill arising on Barry's acquisition of Charlie was:

• A) $21 500
• B) $29 000
• C) $23 750
• D) $25 000

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Definitions:

Bypassing Thalamus

Refers to the process where certain sensory inputs (typically olfactory) are processed directly by the brain without first passing through the thalamus, unlike other sensory information.

Olfaction

The sense of smell, a chemical sensing system that detects odors or substances in the air and is integral to various human and animal behaviors.

Sense Of Smell

The ability to perceive odors or scents through the olfactory system.

Known As

Typically used to introduce a term or name by which a person or thing is identified or familiarly recognized.