. Pantene Company acquired a 70% interest in Sun-silk Company for P 1,420,000 when the fair value of Silk's identifiable net assets was P1,200,000. Pantene acquired 65% interest in Dove Company for P 300,000 when the fair value of Dove's identifiable assets was P 640,000. Pantene measures non-controlling interest at the relevant share of the identifiable net assets at the acquisition date. Neither Sun-silk nor Dove had any contingent liabilities at the acquisition date and the above fair values were the same as the carrying amounts in their financial statements. Annual impairment reviews have not resulted in any impairment losses being recognized. Under PFRS 3: Business Combinations, what figures in respect to goodwill and gain on bargain purchases should be included in Pantene's consolidated Statement of Financial Position a. Goodwill: P-0-; Gain on Bargain Purchase: P-0- b. Goodwill: P580,000; Gain on Bargain Purchase: P116,000 c. Goodwill: P 580,000; Gain on Bargain Purchase: P-0- d. Goodwill: P-00; Gain on Bargain Purchase: P116,000 e. Goodwill: P464,000; Gain on Bargain Purchase: P-0-

. Pantene Company acquired a 70% interest in Sun-silk Company for P 1,420,000 when the fair value of Silk's identifiable net assets was P1,200,000. Pantene acquired 65% interest in Dove Company for P 300,000 when the fair value of Dove's identifiable assets was P 640,000. Pantene measures non-controlling interest at the relevant share of the identifiable net assets at the acquisition date. Neither Sun-silk nor Dove had any contingent liabilities at the acquisition date and the above fair values were the same as the carrying amounts in their financial statements. Annual impairment reviews have not resulted in any impairment losses being recognized. Under PFRS 3: Business Combinations, what figures in respect to goodwill and gain on bargain purchases should be included in Pantene's consolidated Statement of Financial Position a. Goodwill: P-0-; Gain on Bargain Purchase: P-0- b. Goodwill: P580,000; Gain on Bargain Purchase: P116,000 c. Goodwill: P 580,000; Gain on Bargain Purchase: P-0- d. Goodwill: P-00; Gain on Bargain Purchase: P116,000 e. Goodwill: P464,000; Gain on Bargain Purchase: P-0-

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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