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41. On July 1, 2022, Exploding Kittens Company acquired 700,000 shares of Bad Dog Company at a price of P13 per share. Exploding Kittens estimated that the price paid include P1.50 premium in order to gain control over Bad Dog. On this date, the fair values of Bad Dog's identifiable assets and liabilities and their carrying values are given below: Current assets Property, plant and equipment Liabilities Ordinary shares, P5 par Retained earnings Book Value P2,000,000 9,000,000 P3,000,000 5,000,000 3,000,000 Fair Value P2,000,000 11,000,000 Determine the amount of goodwill assuming the non-controlling interest is measured at fair value. a. P P3,000,000 b. P2,550,000 c. P3,450,000 d. P2,100,000 42. Using the information above, determine the amount of goodwill assuming the non-controlling interest is measured at the proportionate share in the net assets. a. P2,100,000 b. P1,050,000 c. P2,550,000 P3,000,000

41. On July 1, 2022, Exploding Kittens Company acquired 700,000 shares of Bad Dog Company at a price of P13 per share. Exploding Kittens estimated that the price paid include P1.50 premium in order to gain control over Bad Dog. On this date, the fair values of Bad Dog's identifiable assets and liabilities and their carrying values are given below: Current assets Property, plant and equipment Liabilities Ordinary shares, P5 par Retained earnings Book Value P2,000,000 9,000,000 P3,000,000 5,000,000 3,000,000 Fair Value P2,000,000 11,000,000 Determine the amount of goodwill assuming the non-controlling interest is measured at fair value. a. P P3,000,000 b. P2,550,000 c. P3,450,000 d. P2,100,000 42. Using the information above, determine the amount of goodwill assuming the non-controlling interest is measured at the proportionate share in the net assets. a. P2,100,000 b. P1,050,000 c. P2,550,000 P3,000,000

FINANCIAL ACCOUNTING
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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41. On July 1, 2022, Exploding Kittens Company acquired 700,000 shares of Bad Dog Company at a price of P13 per share. Exploding Kittens estimated that the price paid include P1.50 premium in order to gain control over Bad Dog. On this date, the fair values of Bad Dog's identifiable assets and liabilities and their carrying values are given below: Current assets Property, plant and equipment Liabilities Ordinary shares, P5 par Retained earnings a. P P3,000,000 b. P2,550,000 c. P3,450,000 d. P2,100,000 Book Value Determine the amount of goodwill assuming the non-controlling interest is measured at fair value. a. P2,100,000 b. P1,050,000 P2,000,000 9,000,000 P3,000,000 5,000,000 3,000,000 c. P2,550,000 d. P3,000,000 Fair Value P2,000,000 11,000,000 42. Using the information above, determine the amount of goodwill assuming the non-controlling interest is measured at the proportionate share in the net assets.
Transcribed Image Text:41. On July 1, 2022, Exploding Kittens Company acquired 700,000 shares of Bad Dog Company at a price of P13 per share. Exploding Kittens estimated that the price paid include P1.50 premium in order to gain control over Bad Dog. On this date, the fair values of Bad Dog's identifiable assets and liabilities and their carrying values are given below: Current assets Property, plant and equipment Liabilities Ordinary shares, P5 par Retained earnings a. P P3,000,000 b. P2,550,000 c. P3,450,000 d. P2,100,000 Book Value Determine the amount of goodwill assuming the non-controlling interest is measured at fair value. a. P2,100,000 b. P1,050,000 P2,000,000 9,000,000 P3,000,000 5,000,000 3,000,000 c. P2,550,000 d. P3,000,000 Fair Value P2,000,000 11,000,000 42. Using the information above, determine the amount of goodwill assuming the non-controlling interest is measured at the proportionate share in the net assets.
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