On 1 January 20X0 Langer Ltd Bought 80% of Slater

question 15

Multiple Choice

On 1 January 20X0 Langer Ltd bought 80% of Slater Ltd by paying $2 000 000 cash and issuing 100 000 ordinary Langer Ltd shares with a fair value of $5.50 per share.The fair value of net assets of Slater Ltd at that date was $2 500 000.The control date fair value of the ownership interests of non-controlling shareholders was $650 000.On 1 January 20X3 Langer Ltd bought the remaining 20% of Slater Ltd on the share market for a total of $1 000 000 cash.The fair value of Slater Ltd's net assets at that date was $4 000 000.
-If the partial method of measuring goodwill is adopted, what was the total amount of consolidation goodwill recognised in Langer Ltd's consolidated financial statements at control date?

• A)$550 000
• B)$1 000 000
• C)$750 000
• D)$200 000

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