I think I’m missing something very important here, can someone please help me?
The answer to this question says that under both the partial and full goodwill method the equity will be the same on the consolidated financials. I don’t quite understand this. Under the full goodwill method you will get 320/.9 = 640 Implied valuation - (.5*580 fair value of net assets) = 60 of “goodwill” which is allocated to licenses and under the partial you get 320 - (.5*580) = 30 of “goodwill” which is allocated to licenses. As a result you will get two different amounts for non-controlling equity, 850 + 580 + 350 = 1750 for the full goodwill method and 850 + 580 + 290 = 1720 for the partial goodwill method. I’m sure I’m missing an important detail in the question stem, can someone help me out?