How much of the goodwill is attributable to the controlling interest ?
Corvus Company has gained control over the operations of Glaive Corporation by acquiring 75% of its outstanding capital stock for P4,650,000. This amount includes a control premium of P225,000. Data from the balance sheets of the two entities included the following amounts as of the date of acquisition:
Corvus Company |
Glaive Corporation |
|
Cash |
1,012,500 |
800,000 |
|
2,770,000 |
675,000 |
Inventory |
1,600,000 |
1,200,000 |
Land |
3,000,000 |
2,400,000 |
Building |
6,750,000 |
3,400,000 |
Accumulated |
(1,687,500) |
(1,700,000) |
Equipment |
800,000 |
250,000 |
Accumulated Depreciation – Equipment |
(162,000) |
(50,000) |
Investment in Glaive Corporation |
4,650,000 |
|
Total Assets |
18,733,000 |
6,975,000 |
Accounts Payable |
700,000 |
1,012,000 |
Other current liabilities |
562,500 |
360,000 |
Notes payable - long term |
1,418,000 |
|
Bonds payable |
2,500,000 |
|
Capital Stock, P100 par |
9,000,000 |
2,500,000 |
Additional paid-in capital |
2,595,000 |
500,000 |
|
3,375,500 |
1,185,000 |
Total |
18,733,000 |
6,975,000 |
At the date of acquisition, the book values of Glaive Corporation’s net assets and liabilities approximated their fair values except for the following:
Fair Values |
|
Accounts Receivable, net |
600,000 |
Land |
3,000,000 |
Building |
2,000,000 |
Other current liabilities |
412,000 |
Notes payable - long term |
1,118,000 |
Non-controlling interest is to be measured at fair value.
How much of the
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