Solved

-On 1 January 20X0, Piano Ltd Acquired 100% of the c

question 9

Multiple Choice

$\begin{array} { l c c c } & \begin{array} { c } \text { Piano Ltd } \\\text { \$ millions }\end{array} & \begin{array} { c } \text { Billy Ltd } \\\text { \$ millions }\end{array} & \begin{array} { c } \text { Man Ltd } \\\text { \$ millions }\end{array} \\\text { Retained profits } & 2300 & 800 & 500 \\\text { Paid-up capital } & 2700 & 400 & 300 \\\text { 1 Jan 20X0 Total } & \mathbf { 5 0 0 0 } & \mathbf { 1 } 200 & \mathbf { 8 0 0 } \\\text { Retained profits } & 4300 & 1200 & 600 \\\text { Paid-up capital } & 2700 & 400 & 300 \\\text { 1 Jan 20X2 Total } & 7 \mathbf { 0 0 0 } & \mathbf { 1 6 0 0 } & \mathbf { 9 0 0 }\end{array}$
-On 1 January 20X0, Piano Ltd acquired 100% of the issued capital of Billy Ltd by paying $1 600 million cash.On 1 January 20X2, Billy Ltd acquired 100% of the issued capital of Man Ltd by paying $1 000 million cash.At these two dates, the fair values of equity of the companies is shown in the above table.
How much goodwill was acquired by each company?

Definitions:

Operant Conditioning

A training approach where the power of a response is altered through incentives or corrective measures.

Human Behavior

Human behavior encompasses the range of actions and mannerisms exhibited by humans in conjunction with their environment, life experiences, and culture, influenced by emotions, attitudes, ethics, and genetics.

Classical Conditioning

An educational process that happens by linking a naturally occurring stimulus with one that occurs in the environment.

Little Albert

An early 20th-century experiment in classical conditioning by John Watson and Rosalie Rayner, demonstrating how emotional responses can be conditioned in humans.