On January 1, 2017, Unilever Corporation purchased 75% of the ordinary shares of High Tide Enterprises. Separate balance sheet for the two companies at the combination date are given below Accounts Unilever High Tide Current assets P120,000 P108,000 Land 31,200 12,800 Plant assets 280,000 120,000 Accumulated depreciation (96,000) (24,000) Inv. In High Tide Ent. 156,800 Totals 492,000 216,800 Accounts payable 82,400 56,800 Ordinary shares 320,000 120,000 Retained earnings 89,600 40,000 Totals 492,000 216,800 At the date of combination, the net assets of High Tide are fairly valued, except for its inventory which is understated by P8,800. The amount of non-controlling interests assigned at the said date is their proportionate share on the fair value of identifiable net assets. Determine the amount of goodwill to be recognized in the consolidated balance sheet at January 1, 2017
On January 1, 2017, Unilever Corporation purchased 75% of the ordinary shares of High Tide Enterprises. Separate balance sheet for the two companies at the combination date are given below
Accounts Unilever High Tide
Current assets P120,000 P108,000
Land 31,200 12,800
Plant assets 280,000 120,000
Accumulated
Inv. In High Tide Ent. 156,800
Totals 492,000 216,800
Accounts payable 82,400 56,800
Ordinary shares 320,000 120,000
Totals 492,000 216,800
At the date of combination, the net assets of High Tide are fairly valued, except for its inventory which is understated by P8,800. The amount of non-controlling interests assigned at the said date is their proportionate share on the fair value of identifiable net assets.
Determine the amount of
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