Parlor Company acquires 75% of Saloon Company's common stock for P225,000 cash. At that date, the non-controlling interest in Saloon has a book value of P52,500 and a fair value of P72,000. Also on that date, Saloon reports identifiable assets with a book value of P400,000 and a fair value of P510,000 and it has liabilities with a book value and a fair value of P190,000. Goodwill or (Gain on bargain purchase) arising on consolidation if fair value of net identifiable assets is to be valued on the full (fair value) basis?

Parlor Company acquires 75% of Saloon Company's common stock for P225,000 cash. At that date, the non-controlling interest in Saloon has a book value of P52,500 and a fair value of P72,000. Also on that date, Saloon reports identifiable assets with a book value of P400,000 and a fair value of P510,000 and it has liabilities with a book value and a fair value of P190,000. Goodwill or (Gain on bargain purchase) arising on consolidation if fair value of net identifiable assets is to be valued on the full (fair value) basis?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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