On January 1, 2021, A Company acquired a 50% interest in B for P60,000,000. A Company already held a 20% interest which had been acquired for P20,000,000 but which was valued at P24,000,000 at January 1, 2021. The fair value of the NCI at January 1, 2021 was P30,000,000, and the fair value of the identifiable net assets of B was P110,000,000. How much is the goodwill to be recognized as a result of the business combination? *a. P 0b. P 3,000,000c. P 4,000,000d. P 7,000,000

Goodwill is the intangible asset which indicates the market value or good worth of the company in…

Answered: On January 1, 2021, A Company acquired…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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On January 1, 2021, A Company acquired a 50% interest in B for P60,000,000. A Company already held a 20% interest which had been acquired for P20,000,000 but which was valued at P24,000,000 at January 1, 2021. The fair value of the NCI at January 1, 2021 was P30,000,000, and the fair value of the identifiable net assets of B was P110,000,000. How much is the goodwill to be recognized as a result of the business combination? *

a. P 0

b. P 3,000,000

c. P 4,000,000

d. P 7,000,000

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