02-07-2006, 04:55 PM
Lets assume the acquisition is made on Dec 31, 2001. (no other date is given in the question)
now using simple formula.
Goodwill = (what you got at fair market price at the point of acquisition) - (what you paid)
Goodwill = (200,000 x 75000/10000 + 75% of 30,000) - (160,000 x 75000/10000)
Goodwill = 1,500,000 + 22,500 - 1,200,000
= 322,500
Now this goodwill will be recorded as intangible asset and needs to be amortized , usually not more than 5 to 7 years.
anybody, correct me if i am wrong.
Regards
Asif
now using simple formula.
Goodwill = (what you got at fair market price at the point of acquisition) - (what you paid)
Goodwill = (200,000 x 75000/10000 + 75% of 30,000) - (160,000 x 75000/10000)
Goodwill = 1,500,000 + 22,500 - 1,200,000
= 322,500
Now this goodwill will be recorded as intangible asset and needs to be amortized , usually not more than 5 to 7 years.
anybody, correct me if i am wrong.
Regards
Asif
