FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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TRICKY Company acquires 25% of JOKER Corporation’s ordinary shares for P190,000 cash and carries the investment using the cost method. After one quarter, TRICKY Company purchases another 60% of JOKER Corporation’s ordinary shares for P540,000. On this date, JOKER Corporation reports identifiable net assets with carrying value of P720,000 and fair value of P920,000. The liabilities of JOKER Corporation has a book value and fair value of 280,000. The fair value of the 15% controlling interest is P125,000.

 

How much is the goodwill or gain on acquisition?

Group of answer choices
17,000 gain on acquisition
250,000 gain on acquisition
250,000 goodwill
17,000 goodwill
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