On January 2, 2019. Parent Co. acquired all the outstanding common stock of Subsidiary Co. for P2,060,000. On that date, Subsidiary Co. reported the following stockholders' equity account balances: Common Stock P800,000, P100 par. Additional Paid in Capital P620,000, Retained Earnings P300,000. On December 15, 2018, Subsidiary Co. declared cash dividends of P10 per share on record of January 15, 2019, payable on February 1, 2019.The assets and liabilities of Subsidiary Co. had book values that were approximately equal to its market values, except building that was undervalued by P400,000, and equipment that was overvalued by P120,000. The building has an estimated, life of 20 years and equipment with 5 years useful life. Prior to acquisition, Subsidiary Co. has unimpaired goodwill in the amount of P10,000. What is the amount of goodwill (gain on bargain purchase) to be reported in the consolidated balance sheet at the date of acquisition?
On January 2, 2019. Parent Co. acquired all the outstanding common stock of Subsidiary Co. for P2,060,000. On that date, Subsidiary Co. reported the following
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