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 GOODWILL arising from the consolidation if the 100,000, P50 par value shares of the subsidiary are currently selling at 90 per share.

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A: 1. Identifying the subsidiaries: Determining which entities should be included in the consolidation…