Problem
NURIYANIX PTY LTD acquired 100% of the issued shares of DYK Ltd for $240,000 (DYK Ltd.'s owner's equity at the time of purchasing was $300,000 made up of share capital of $240,000 and retained earnings of $60000). One of the liabilities of DYK Ltd was $54,000 for the dividend payable but not yet paid, and our accountant informed me that the shares were acquired based on Ex-dividend. In addition, one of the areas of discussion during the negotiation process was the current court case that DYK Ltd was involved in. No monetary amount was disclosed, but the company's lawyers had placed a $18000 amount on the probable payout to settle the case.
Having prepared the acquisition analysis as part of preparing the consolidated financial statements for NURIYANIX PTY LTD Ltd, can you explain how the unrecorded contingent liability of $18,000 by the subsidiary DYK Ltd affects the group's goodwill? I believe the goodwill for NURIYANIX PTY Ltd should be $60,000 (being $240,000 less $300,000). Is this correct?