Problem
Nina acquired a 75% controlling interest in Pinta in two stages.
• In 2012, Nina acquired 15% equity interest for cash consideration of$ 10,000. Nina classified the interest as available- for- sale under IAS 39. From 2012 to the end of 2014, Nina reported fair value increases of $2,000 in other comprehensive income (OCI)
• On January 2014, Nina acquired a further 60% equity for a cash consideration of $60,000. Nina identified net assets of Pinta with a fair value of $80,000. Nina elected to measure non-controlling interest at their share of net assets. On the date of the acquisition, the previously-held 15% interest had a fair value of $12,500.
Calculate the cost of investment that will be used in computing goodwill.