alleryStart learning →A 30% stake costs Rs 90,00,000; share of net fair value is Rs 80,00,000. The Rs 10,00,000 is:
ACapital reserve
BGoodwill in investment
CGain in profit or loss
DAmortised over 5 years
Answer & Solution
Correct answer: B. Goodwill in investment
Cost exceeds the share of net fair value by 10,00,000, which is goodwill included within the investment carrying amount.
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