Jaskova is 100% acquired by the Pellorix group for 7,500,000. Before deferred tax, identifiable net assets at fair value are 6,900,000. The combination gives rise to taxable differences of 1,000,000 and deductible differences of 400,000, whose use is judged probable. Tax rate: 30%. Using the teaching assumption goodwill = consideration − identifiable net assets, compute goodwill.
- Consideration transferred
- 7,500,000
- Net assets at fair value before deferred tax
- 6,900,000
- Taxable temporary differences
- 1,000,000
- Deductible temporary differences
- 400,000
- Tax rate (%)
- 30 %