On January 1, 2021, A Company acquired a 50% interest in B for P60,000,000. A Company already held a 20% interest which had been acquired for P20,000,000 but which was valued at P24,000,000 at January 1, 2021. The fair value of the NCI at January 1, 2021 was P30,000,000, and the fair value of the identifiable net assets of B was P110,000,000. How much is the goodwill to be recognized as a result of the business combination? * a. P 0 b. P 3,000,000 c. P 4,000,000 d. P 7,000,000

On January 1, 2021, A Company acquired a 50% interest in B for P60,000,000. A Company already held a 20% interest which had been acquired for P20,000,000 but which was valued at P24,000,000 at January 1, 2021. The fair value of the NCI at January 1, 2021 was P30,000,000, and the fair value of the identifiable net assets of B was P110,000,000. How much is the goodwill to be recognized as a result of the business combination? * a. P 0 b. P 3,000,000 c. P 4,000,000 d. P 7,000,000

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter12: Intangibles

Section: Chapter Questions

Problem 18E

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