Determine the goodwill or gain on bargain purchase assuming the consideration paid includes control premium of P852,000. Determine the goodwill or gain on bargain purchase assuming the consideration paid excludes control premium of P138,000 and the fair value of the non-controlling interest is P736,500.
Determine the goodwill or gain on bargain purchase assuming the consideration paid includes control premium of P852,000. Determine the goodwill or gain on bargain purchase assuming the consideration paid excludes control premium of P138,000 and the fair value of the non-controlling interest is P736,500.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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- The
Statement of Financial Position (SFP) of Arthur Corporation on June 30, 202X is presented below:
|
Current Assets |
P195,000 |
|
Land |
1,320,000 |
|
Building |
660,000 |
|
Equipment |
525,000 |
|
Total Assets |
P2,700,000 |
|
|
|
|
Liabilities |
P525,000 |
|
Ordinary Shares, P5 par |
900,00 |
|
Share Premium |
825,000 |
|
|
450,000 |
|
Total Equities |
P2,700,000 |
All the assets and liabilities of Arthur were assumed to approximate their fair values except for land and building. It is estimated that the land has a fair value of P2,100,000, and the fair value of the building increased by P480,000. Ezekeil Corporation acquired 80% of Arthur’s outstanding shares for P3,000,000. The non-controlling interest is measured at fair value.
Required
- Determine the
goodwill or gain on bargain purchase assuming the consideration paid includes control premium of P852,000. - Determine the goodwill or gain on bargain purchase assuming the consideration paid excludes control premium of P138,000 and the fair value of the non-controlling interest is P736,500.
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