Parent Company purchases 80% of the outstanding shares of Subsidiary Company for P9,000,000. The carrying value of Subsidiary Company’s net assets at the time of acquisition was P6,000,000 and had a fair value of P8,000,000. Determine the following: What is the Goodwill arising from the consolidation if it is to be computed using the full fair value basis of “Full/Gross-up” Goodwill, assuming the cost of acquisition includes a control premium of P400,000?

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