Windell Inc. acquired 85% of the outstanding voting shares of Ralph Corp for P1,500,000. On the acquisition date, Ralph's identifiable assets and liabilities have fair values of P6,000,000 and P4,700,000, respectively. Windell opts to measure the non-controlling at a fair value of P300,000. How much is the goodwill (gain on bargain purchase) as a result of the business combination?

Windell Inc. acquired 85% of the outstanding voting shares of Ralph Corp for P1,500,000. On the acquisition date, Ralph's identifiable assets and liabilities have fair values of P6,000,000 and P4,700,000, respectively. Windell opts to measure the non-controlling at a fair value of P300,000. How much is the goodwill (gain on bargain purchase) as a result of the business combination?

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

ChapterA2: Investments

Section: Chapter Questions

Problem 30E

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