VW acquired 240,000 of the 300,000 $1 equity shares of EF for $1,440,000 on 1 January 20X2. Goodwill arising from the acquisition, using the proportionate method for measuring non controlling interest, was $540,000. On 1 January 20X3 VW disposed of 30,000 of the equity shares in EF for $200,000 cash when the net assets of EF were £1,200,000. Goodwill arising on the acquisition of EF had not suffered any impairment.
Prepare the accounting adjustment that will be processed by VW to reflect the disposal of shares in EF when it prepares its consoldiated financial statements.
Submit