Company acquires 75 percent of Saloon Company's common stock for P225,000 cash. At that date, the non-controlling interest in Saloon has a book value of P52,500 and a fair value of P82,000. Also on that date Saloon reports identifiable assets with a book value of P400,000 and a fair value of P510,000, and it has liabilities with a book value and fair value of P190,000. Gain on bargain purchase arising on consolidation if fair value of net identifiable assets is to be valued on the proportionate basis:
Company acquires 75 percent of Saloon Company's common stock for P225,000 cash. At that date, the non-controlling interest in Saloon has a book value of P52,500 and a fair value of P82,000. Also on that date Saloon reports identifiable assets with a book value of P400,000 and a fair value of P510,000, and it has liabilities with a book value and fair value of P190,000. Gain on bargain purchase arising on consolidation if fair value of net identifiable assets is to be valued on the proportionate basis:
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:Company acquires 75 percent of Saloon Company's common stock for
P225,000 cash. At that date, the non-controlling interest in Saloon has a
book value of P52,500 and a fair value of P82,000. Also on that date
Saloon reports identifiable assets with a book value of P400,000 and a fair
value of P510,000, and it has liabilities with a book value and fair value of
P190,000.
Gain on bargain purchase arising on consolidation if fair value of net
identifiable assets is to be valued on the proportionate basis:
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