FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Parent Company acquired Subsidiary Company in two stages:
• In 2017, Parent acquired a 30% equity interest for cash
consideration of P320,000 when the fair value of
Subsidiary's identifiable net assets was P800,000.
• In 2021, Parent acquired a further 50% equity interest for
cash consideration of P750,000. On the acquisition date,
the fair value of Subsidiary's identifiable net assets was
P920,000. The fair value of Parent's original 30% holding
was P400,000 and the fair value of the non-controlling
interest is assessed as P280,000.
NCI is measured at their share of net assets. What is the
amount of goodwill (gain or bargain purchase) from the step
acquisition?
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Transcribed Image Text:Parent Company acquired Subsidiary Company in two stages: • In 2017, Parent acquired a 30% equity interest for cash consideration of P320,000 when the fair value of Subsidiary's identifiable net assets was P800,000. • In 2021, Parent acquired a further 50% equity interest for cash consideration of P750,000. On the acquisition date, the fair value of Subsidiary's identifiable net assets was P920,000. The fair value of Parent's original 30% holding was P400,000 and the fair value of the non-controlling interest is assessed as P280,000. NCI is measured at their share of net assets. What is the amount of goodwill (gain or bargain purchase) from the step acquisition?
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