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Hades Company’s shareholders’ equity as of December 31, 2019 is P2,030,000. On January 1, 2020, Hades acquires 15% of Zeus Company’s ordinary share for P150,000 cash and by issuing its own shares with fair value of P200,000.The investment is accounted at FV thru PL. After three months, Hades purchases another 55% of Zeus’s ordinary share for cash payment of P1,100,000. On this date, Zeus reports identifiable assets with carrying value of P1,800,000 and fair value of P3,200,000 and it has liabilities with a book value and fair value of P900,000.. The fair value of 20% NCI is P360,000. NCI is valued using the FV basis. Hades also paid the following in connection to stock acquisitions of Hades: P65,000 for broker’s fee; P70,000 for pre-acquisition audit fee; P21,500 for legal fees; P18,000 for SEC registration of share issued and P5,500 for printing of share certificates. What is the NCI at acquisition date? • 600,000 • 300,000 • 900,000 • 690,000 • None of the above

Hades Company’s shareholders’ equity as of December 31, 2019 is P2,030,000. On January 1, 2020, Hades acquires 15% of Zeus Company’s ordinary share for P150,000 cash and by issuing its own shares with fair value of P200,000.The investment is accounted at FV thru PL. After three months, Hades purchases another 55% of Zeus’s ordinary share for cash payment of P1,100,000. On this date, Zeus reports identifiable assets with carrying value of P1,800,000 and fair value of P3,200,000 and it has liabilities with a book value and fair value of P900,000.. The fair value of 20% NCI is P360,000. NCI is valued using the FV basis. Hades also paid the following in connection to stock acquisitions of Hades: P65,000 for broker’s fee; P70,000 for pre-acquisition audit fee; P21,500 for legal fees; P18,000 for SEC registration of share issued and P5,500 for printing of share certificates. What is the NCI at acquisition date? • 600,000 • 300,000 • 900,000 • 690,000 • None of the above

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter13: Investments And Long-term Receivables
Section: Chapter Questions
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Hades Company’s shareholders’ equity as of December 31, 2019 is P2,030,000. On January 1, 2020, Hades acquires 15% of Zeus Company’s ordinary share for P150,000 cash and by issuing its own shares with fair value of P200,000.The investment is accounted at FV thru PL. After three months, Hades purchases another 55% of Zeus’s ordinary share for cash payment of P1,100,000. On this date, Zeus reports identifiable assets with carrying value of P1,800,000 and fair value of P3,200,000 and it has liabilities with a book value and fair value of P900,000.. The fair value of 20% NCI is P360,000. NCI is valued using the FV basis. Hades also paid the following in connection to stock acquisitions of Hades: P65,000 for broker’s fee; P70,000 for pre-acquisition audit fee; P21,500 for legal fees; P18,000 for SEC registration of share issued and P5,500 for printing of share certificates. What is the NCI at acquisition date? • 600,000 • 300,000 • 900,000 • 690,000 • None of the above
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