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  3. 6. trabant co purchased all of the ordinary share

6. Trabant Co purchased all of the ordinary share capital of Skoda Co during 208....

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Accounting

image 6. Trabant Co purchased all of the ordinary share capital of Skoda Co during 208. On this date the fair value of the net assets of Skoda Co was $15 million. The terms of the purchase agreement provided for immediate cash consideration of $10 million and a further $10 million deferred for 12 months. Trabant Co paid its advisors $1 million in costs directly related to the acquisition. Trabant Co's cost of capital is 6%. What goodwill arises on the acquisition

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