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:

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:

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Concept explainers

Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.

Question

1. 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 working paper elimination entries
prepared immediately after the
combination will include:

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