goodwill or (gain on acquisition) arising on consolidation ace price?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:PROBLEM III
P Company acquired 75% of S Company's ordinary share for P510,000 cash. At that date, S Company reports identifiable assets with
book value of P1,040,000 and a fair value of P1,280,000 and it has liabilities with book value and a fair value of P716,000. How much is
the goodwill or (gain on acquisition) arising on consolidation if NCI is measured at fair value and that control premium of P30,000 included
in the purchase price?
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