28. Company A owns a 35% interest in Company B. The investment, with an original cost ofP50,000, is accounted for as an associate using the equity method. On 30 December 2020,the carrying value of the investment in Company B was P230,000 and its fair value wasP308,000. The fair value of Company B's identifiable net assets on that date was P800,000.On 31 December 2020, Company A purchased an additional 40% interest in Company Bfor P352,000, thereby obtaining control. Company A opted to measure NCI at fair valuewhich was determined to be P220,000.How much goodwill (gain) is recognized on the second purchased of interest?a. (P42,000)b. P80,000c. (P178,000)d. P2,000Maynard Corporation reports net assets of P300,000 at book value. These assets have anestimated market value of P350,000. Jim Corporation buys 80% ownership of Maynard forP300,000; there is a control premium of P10,000 included in the purchase price.Of the Goodwill reported in the consolidated balance sheet (as of date of acquisition), howmuch is attributable to the non-controlling interest?а. Р3,000b. P5,000с. Р2,500d. P4,500

Facts of the Question 28 : Share of investment of company A= 35% Original cost of investment…

28. Company A owns a 35% interest in Company B. The investment, with an original cost of P50,000, is accounted for as an associate using the equity method On 30 December 2020 the carrying value of the investment in Company B was P230,000 and its fair value was P308,000. The fair value of Company B's identifiable net assets on that date was P800,000. On 31 December 2020, Company A purchased an additional 40% interest in Company E for P352,000, thereby obtaining control. Company A opted to measure NCI at fair value which was detemined to be P220,000. How much goodwill (gain) is recognized on the second purchased of interest? a (P42,000) b. P80,000 c. (P178,000) d. P2,000

28. Company A owns a 35% interest in Company B. The investment, with an original cost of P50,000, is accounted for as an associate using the equity method On 30 December 2020 the carrying value of the investment in Company B was P230,000 and its fair value was P308,000. The fair value of Company B's identifiable net assets on that date was P800,000. On 31 December 2020, Company A purchased an additional 40% interest in Company E for P352,000, thereby obtaining control. Company A opted to measure NCI at fair value which was detemined to be P220,000. How much goodwill (gain) is recognized on the second purchased of interest? a (P42,000) b. P80,000 c. (P178,000) d. P2,000

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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