6. Malachi Company purchased 80% of thevoting ordinary shares of LamentationsCompany for P900,000. There are noliabilities recorded in the books of theacquire. Non-controlling interest ismeasured at proportionate share ofLamentation's identifiable net assets.The following book and fair values areavailable for Lamentations as of thedate of acquisition:Book ValueFair ValueCurrent assetsP100,000P200.000Land and building200,000200.000Machinery300.000600.000Goodwill100,000The machinery will appear on theconsolidated balance sheet at

All Assets and liabilities are recorded at air value in consolidated books

Answered: 600.000 Goodwill 100,000 ? The…

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600.000 Goodwill 100,000 ? The machinery will appear on the consolidated balance sheet at

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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Question

6. Malachi Company purchased 80% of the
voting ordinary shares of Lamentations
Company for P900,000. There are no
liabilities recorded in the books of the
acquire. Non-controlling interest is
measured at proportionate share of
Lamentation's identifiable net assets.
The following book and fair values are
available for Lamentations as of the
date of acquisition:
Book Value
Fair Value
Current assets
P100,000
P200.000
Land and building
200,000
200.000
Machinery
300.000
600.000
Goodwill
100,000
The machinery will appear on the
consolidated balance sheet at

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