FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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PROBLEM III P Company acquired 75% of S Company's ordinary share for P510,000 cash. At that date, S Company reports identifiable assets with book value of P1,040,000 and a fair value of P1,280,000 and it has liabilities with book value and a fair value of P716,000. How much is the goodwill or (gain on acquisition) arising on consolidation if NCI is measured at fair value and that control premium of P30,000 included in the purchase price?
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Transcribed Image Text:PROBLEM III P Company acquired 75% of S Company's ordinary share for P510,000 cash. At that date, S Company reports identifiable assets with book value of P1,040,000 and a fair value of P1,280,000 and it has liabilities with book value and a fair value of P716,000. How much is the goodwill or (gain on acquisition) arising on consolidation if NCI is measured at fair value and that control premium of P30,000 included in the purchase price?
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Step 1 Calculation of identifiable net assets:
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Step 2 Calculation of non controlling Interest:
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Step 3 Calculation of goodwill or gain on acquisition:
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