How much is the goodwill/gain on acquisition on the books of ABC? Using the same information but the fair value of the non-controlling interest is 112,750, how much is the goodwill/gain on acquisition? Using the same information, assuming the consideration paid includes control premium of 37,000 how much is the goodwill/gain on acquisition?
How much is the goodwill/gain on acquisition on the books of ABC? Using the same information but the fair value of the non-controlling interest is 112,750, how much is the goodwill/gain on acquisition? Using the same information, assuming the consideration paid includes control premium of 37,000 how much is the goodwill/gain on acquisition?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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How much is the
Using the same information but the fair value of the non-controlling interest is 112,750, how much is the goodwill/gain on acquisition?
Using the same information, assuming the consideration paid includes control premium of 37,000 how much is the goodwill/gain on acquisition?
Transcribed Image Text:The statement of financial position of XYZ Corporation on June 30, 2013 is presented below:
Current assets
P32,500
Land
220,000
Building
110,000
Equipment
87,500
Total assets
P450,000
Liabilities
87,500
Capital stock, P5 par
150,000
Additional paid-in capital
Retained earnings
137,500
75,000
Total equities
P450,000
| All the assets and liabilities of XYZ assumed to approximate their fair values except land and building. It is
estimated that the land has a fair value of 350,000 and the fair value of the building increased by P80,000.
ABC Corporation acquired 80% of XYZ's capital stock for P500,000.
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