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1, 2021, ABC Co. acquired most of the outstar a paper elimination entries on that date for the plder's Equity - XYZ Dr. 2,437,500 ent in XYZ - Cr. 1,584,375 ntrolling Interest - Cr. 853,125

1, 2021, ABC Co. acquired most of the outstar a paper elimination entries on that date for the plder's Equity - XYZ Dr. 2,437,500 ent in XYZ - Cr. 1,584,375 ntrolling Interest - Cr. 853,125

SWFT Comprehensive Volume 2019
SWFT Comprehensive Volume 2019
42nd Edition
ISBN:9780357233306
Author:Maloney
Publisher:Maloney
Chapter20: Corporations: Distributions In Complete Liquidation And An Overview Of Reorganizations
Section: Chapter Questions
Problem 35P
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On July 1, 2021, ABC Co. acquired most of the outstanding shares of XYZ Co. for cash. The incomplete Working paper elimination entries on that date for the consolidated financial position are as follows: E1: Shareholder's Equity - XYZ Dr. 2,437,500 Investment in XYZ - Cr. 1,584,375 Non-controlling Interest - Cr. 853,125 E2: Inventories - Dr. 62,500 Equipment - Dr. 312,500 Patent - Dr. 61,250 Goodwill - Dr. ????? Investment in XYZ - Cr. 468,750 Non-controlling Interest - Cr. ????? Included in the purchase price is a control premium of 68,750. Assuming NCI is measured at Fair Value in the amount of P1,500,000, what is the goodwill to be reported in the consolidated financial position at the date of acquisition?
Transcribed Image Text:On July 1, 2021, ABC Co. acquired most of the outstanding shares of XYZ Co. for cash. The incomplete Working paper elimination entries on that date for the consolidated financial position are as follows: E1: Shareholder's Equity - XYZ Dr. 2,437,500 Investment in XYZ - Cr. 1,584,375 Non-controlling Interest - Cr. 853,125 E2: Inventories - Dr. 62,500 Equipment - Dr. 312,500 Patent - Dr. 61,250 Goodwill - Dr. ????? Investment in XYZ - Cr. 468,750 Non-controlling Interest - Cr. ????? Included in the purchase price is a control premium of 68,750. Assuming NCI is measured at Fair Value in the amount of P1,500,000, what is the goodwill to be reported in the consolidated financial position at the date of acquisition?
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