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Chapter 15
Example 15.2
Alladin has owned 80% of Sane for many years. It has just acquired a further
15% of Sane's shares for $285,000.
At acquisition the fair value of the NCI in Sane was $300,000. The net assets of
Sane at acquisition were $900,000 and are $1,200,000 at the date of acquisition
of the additional shares.
It is group policy to value the NCI at fair value at the date of acquisition.
Required:
Show the journal entry that would record the purchase of the additional
shares in the consolidated financial statements of the Alladin Group.
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