Answer:
$112,500
Explanation:
The good will to be reported in the balance sheet of the Pacific Corporation as at December 31 shall be determined using the following mentioned method:
Cost to acquire share of the Pacific Corporation $2,850,000
Less:Net Assets Acquired of Sand Corporation
Sand Net Assets $3,000,000
Excess value of land $200,000
Excess value of equipment $150,000
Fair value of non-compete $300,000
$3,650,000 ($3,650,000)
Add:Net Assets portion of the Non controlling interest $912,500
($3,650,000*25%)
Good will $112,500
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The first thing you could do is get a lawyer. Other ways are going over the contract before signing it.
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