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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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BUSINESS COMBINATION
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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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