Consolidation goodwill vs gain

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    Topic
  • #199301
    seaoh
    Participant

    In business consolidations, is there a difference between how to calculate goodwill (full goodwill method) and calculating gain?

    Are they the same?

    Goodwill = fair value of sub – fair value of sub’s net assets

    From my understanding, this is also how you arrive at a gain. Please help clear this up! thanks!!

    AUD - 81 (8/15)
    BEC - 83 (10/15)
    FAR - 84 (1/16)
    REG - 79 (5/16)

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  • #753400
    AlexCPA
    Participant

    No difference. they are calculated in the same way. Don't forgot to add the FV of identifiable intangible assets to the net asset calculation.

    FAR - 89
    AUD - 88
    REG - TBD
    BEC - TBD

    Using Becker and Ninja MCQ

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