. Goodwill arising from the consolidation if it is to be computed using the proportionate basis or “Partial Goodwill”
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.
2. Non-controlling arising from the consolidation if it is to be computed using the proportionate basis or “Partial Goodwill”
3. 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.
4. 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.
5. Goodwill arising from the consolidation if the non-controlling interest is stated at fair value of P2,000,000.
6. Goodwill arising from the consolidation if the 100,000, P50 par value shares of the subsidiary are currently selling at 90/share.
7. 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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