On January 1, 2020, Tam acquired 15% of outstanding common stocks of Tum at a price of P120,000 and paid acquisition related cost of P10,000. Tam acquired the investment for trading purposes. On April 1, 2020, Tam acquired additional 25% of outstanding common stocks of Tum at a price of P200,000 and paid acquisition related costs of P30,000. On July 1, 2020, Tam acquired additional 50% of outstanding common stocks of Tum at a price of P500,000 and paid acquisition related cost of P50,000. On July 1, 2020, Tum’s net asset is reported at P1,000,000 but its land is overstated by P300,000 while its building is understated by P100,000. It is the company policy of Tam to initially measure the non-controlling interest in net assets at fair value. Tum reported net income for the year ended December 31, 2020 in the amount of P100,000. What is the goodwill to be recognized by Tam arising from acquisition of Tum in its Consolidated Statement of Financial Position as of December 31, 2020? P180,000 P300,000 P200,000 P250,000
On January 1, 2020, Tam acquired 15% of outstanding common stocks of Tum at a price of P120,000 and paid acquisition related cost of P10,000. Tam acquired the investment for trading purposes. On April 1, 2020, Tam acquired additional 25% of outstanding common stocks of Tum at a price of P200,000 and paid acquisition related costs of P30,000. On July 1, 2020, Tam acquired additional 50% of outstanding common stocks of Tum at a price of P500,000 and paid acquisition related cost of P50,000. On July 1, 2020, Tum’s net asset is reported at P1,000,000 but its land is overstated by P300,000 while its building is understated by P100,000. It is the company policy of Tam to initially measure the non-controlling interest in net assets at fair value. Tum reported net income for the year ended December 31, 2020 in the amount of P100,000.
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P180,000
P300,000
P200,000
P250,000
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