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: 1.Goodwill arising from the consolidation if the non-controlling interest is stated at fair value of P2,000,000. 2. Goodwill arising from the consolidation if the 100,000, P50 par value shares of the subsidiary are currently selling at 90/share. 3. Assume Parent purchased 80% of Subsidiary shares for P6,300,000; 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 following:
1.
P2,000,000.
2. Goodwill arising from the consolidation if the 100,000, P50 par value shares of the subsidiary are
currently selling at 90/share.
3. Assume Parent purchased 80% of Subsidiary shares for P6,300,000; determine the goodwill arising
from the consolidation if the non-controlling interest is stated at fair value of P2,000,000.
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