Questions: a. How much is the Goodwill/Gain on Bargain Purchase?b. How much is the Consolidated Assets?c. PROBLEM 2-16On January 1, 2022, Alpha Company acquired 75% of the shares of BetaCompany for an amount which is P300,000 over the book value of interestacquired. On this date, the balance sheet of Alpha Company and BetaCompany are as follows:BUSINESSCHAPTER 2: CONSOLIDATIONOF ACQUISITIONAssetsCashAccounts ReceivableInventoriesEquipment (net)PatentsTotal AssetsLiabilities & EquityAccounts PayableNotes Payable117Ordinary Share CapitalOrdinary Share PremiumRetained EarningsTotal Liabilities & EquityAlphaCompanyP7,500,0001,700,0001,150,0005,000,000200,000P15,550,000P600,0002,000,0005,000,0006,750,0001,200,000P15,550,000DATEBeta CompanyP1,300,000450,000800,0001,050,00050,000P3,650,000P200,0002,000,000600,000850,000P3,650,000The identifiable assets and liabilities of Beta Company are fairly valuedexcept for inventories which is undervalued by P100,000 while equipmentis undervalued by P450,000. Paid direct and indirect expenses of P80,000and 70,000, respectively. The interest not attributable to Alpha Companyis measured at fair value.

Calculation of the Goodwill/Gain on Bargain Purchase. Alpha Company purchased 75% of the shares of…

Answered: a. How much is the Goodwill/Gain on…

Business

Accounting

a. How much is the Goodwill/Gain on Bargain Purchase? b. How much is the Consolidated Assets?

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

ChapterA2: Investments

Section: Chapter Questions

Problem 30E

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