Fanta Co acquired 100% of the ordinary share capital of Tizer Co on 1 October 20X7.
On 31 December 20X7 the share capital and retained earnings of Tizer Co were as follows:
?????????????????????????????????????????????????????????????????????????????????????? $'000
Ordinary shares of $1 each???????????????????????????????????????????? ?400?
Retained earnings at 1 January 20X7????????????????????????????? 100
Retained profit for the year ended 31 December 20X7???? 80
??????????????????????????????????????????????????????????????????????????????????????????580
The profits of Tizer Co have accrued evenly throughout 20X7. Goodwill arising on the acquisition of Tizer Co was $30,000.
What was the cost of the investment in Tizer Co?