Full Goodwill

CFA Level II FRA
#1

If company A acquires 50% stake in a company T by paying the target $100,000 in cash.

Total asset of Company T is equivalent to $160,000.

The question states that the fair value of company T assets and liabilities are same as the book value.

My question is as follows; in order to calculate the good will it will be (100,000/.5=200,000)

Then I will subtract the total market value (calculate) worth $200,000 - by the total assets worth $160,000= $40,000

is that correct?

#2

Full GW is $40K. I calculate it a different way but you got it right. Many ways to skin a cat.

#3

This true, can you tell me the other method, it may be easier!