On January 1, 2021, A Company acquired a 50% interest in B for P60,000,000. A Company already held a 20% interest which had been acquired for P20,000,000 but which was valued at P24,000,000 at January 1, 2021. The fair value of the NCI at January 1, 2021 was P30,000,000, and the fair value of the identifiable net assets of B was P110,000,000. How much is the goodwill to be recognized as a result of the business combination? * a. P 0 b. P 3,000,000 c. P 4,000,000 d. P 7,000,000
On January 1, 2021, A Company acquired a 50% interest in B for P60,000,000. A Company already held a 20% interest which had been acquired for P20,000,000 but which was valued at P24,000,000 at January 1, 2021. The fair value of the NCI at January 1, 2021 was P30,000,000, and the fair value of the identifiable net assets of B was P110,000,000. How much is the goodwill to be recognized as a result of the business combination? * a. P 0 b. P 3,000,000 c. P 4,000,000 d. P 7,000,000
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter12: Intangibles
Section: Chapter Questions
Problem 18E
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- On January 1, 2021, A Company acquired a 50% interest in B for P60,000,000. A Company already held a 20% interest which had been acquired for P20,000,000 but which was valued at P24,000,000 at January 1, 2021. The fair value of the NCI at January 1, 2021 was P30,000,000, and the fair value of the identifiable net assets of B was P110,000,000. How much is the
goodwill to be recognized as a result of the business combination? *
a. P 0
b. P 3,000,000
c. P 4,000,000
d. P 7,000,000
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