Parent Company purchases 80% of the outstanding shares of Subsidiary Company for P9,000,000. The carrying value of Subsidiary Company’s net assets at the time of acquisition was P6,000,000 and had a fair value of P8,000,000. Determine the following: What is the Goodwill arising from the consolidation if it is to be computed using the full fair value basis of “Full/Gross-up” Goodwill, assuming the cost of acquisition includes a control premium of P400,000?

Parent Company purchases 80% of the outstanding shares of Subsidiary Company for P9,000,000. The carrying value of Subsidiary Company’s net assets at the time of acquisition was P6,000,000 and had a fair value of P8,000,000. Determine the following: What is the Goodwill arising from the consolidation if it is to be computed using the full fair value basis of “Full/Gross-up” Goodwill, assuming the cost of acquisition includes a control premium of P400,000?

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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Parent Company purchases 80% of the outstanding shares of Subsidiary Company for P9,000,000. The carrying value of Subsidiary Company’s net assets at the time of acquisition was P6,000,000 and had a fair value of P8,000,000. Determine the GOOWILL arising from the consolidation if it is to be computed using the full fair value basis of “Full/Gross-up” Goodwill, assuming the cost of acquisition includes a control premium of P400,000.
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Parent Company purchases 80% of the outstanding shares of Subsidiary Company for P9,000,000. The carrying value of Subsidiary Company’s net assets at the time of acquisition was P6,000,000 and had a fair value of P8,000,000. Determine the following: -Non-controlling arising from the consolidation if it is to be computed using the proportionate basis or “Partial Goodwill” -Goodwill arising from the consolidation if it is to be computed using the full (fair value basis of “Full/Gross-up” Goodwill, assuming the cost of acquisition includes a control premium of P400,000.
Parent Company purchases 80% of the outstanding shares of Subsidiary Company for P9,000,000. The carrying value of SubsidiaryCompany’s net assets at the time of acquisition was P6,000,000 and had a fair value of P8,000,000. Determine the following:1. Non-controlling interest arising from the consolidation if it is to be computed using the full (fair valuebasis of “Full/Gross-up” Goodwill, assuming the cost of acquisition includes a control premium ofP400,000.2. Goodwill arising from the consolidation if the non-controlling interest is stated at fair value ofP2,000,000.3. Goodwill arising from the consolidation if the 100,000, P50 par value shares of the subsidiary arecurrently selling at 90/share.4. Assume Parent purchased 80% of Subsidiary shares for P6,300,000; determine the goodwill arisingfrom the consolidation if the non-controlling interest is stated at fair value of P2,000,000.
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P Company purchases 80% of the outstanding shares of S Company for P9,000,000. The carrying value of S Company's net assets at the time of acquisition was P6,000,000 and had a fair value of P8,000,000. WHAT IS THE AMOUNT OF THE: a. Goodwill arising from the consolidation if it is to be computed using the proportionate basis or "Partial Goodwill" b. Non-controlling arising from the consolidation if it is to be computed using the proportionate basis or "Partial Goodwill" c. Goodwill arising from the consolidation if it is to be computed using the full (fair value basis of "Full/Gross-up" Goodwill, assuming the cost of acquisition includes a control premium of P400,000. d. Non-controlling interest arising from the consolidation if it is to be computed using the full (fair value basis of "Full/Gross-up" Goodwill, assuming the cost of acquisition includes a control premium of P400,000. e. Goodwill arising from the consolidation if the non-controlling interest is stated at fair value of…
Parent Company purchases 80% of the outstanding shares of Subsidiary Company for P9,000,000. The carrying value of Subsidiary Company’s net assets at the time of acquisition was P6,000,000 and had a fair value of P8,000,000. Determine the GOODWILL arising from the consolidation if the non-controlling interest is stated at fair value of P2,000,000.
Parent Company purchases 80% of the outstanding shares of Subsidiary Company for P9,000,000. The carrying value of Subsidiary Company’s net assets at the time of acquisition was P6,000,000 and had a fair value of P8,000,000. Determine the NON-CONTROLLING INTEREST arising from the consolidation if it is to be computed using the proportionate basis (or Partial Goodwill).