On July 01, 2021, Parent, Inc. acquired most of the outstanding common stock of Subsidiary Company for cash. The incomplete working paper elimination entries on that date for the consolidated statement of financial position of Parent, Inc. and its subsidiary are shown below: Stockholder's Equity Subsidiary P2,437,500 1,584,375 Investment in Subsidiary 853,125 Non - Controlling Interest Inventory 62,500 Equipment 312,500 Patent 61,250 Goodwill Investment in Subsidiary 468,750 Non Controlling Interest ncluded in the purchase price is a control premium of P68,750. The amount of goodwill to be reported n the consolidated statement of financial position on July 01, 2021, assuming non-controlling interest s measured at fair value.
On July 01, 2021, Parent, Inc. acquired most of the outstanding common stock of Subsidiary Company for cash. The incomplete working paper elimination entries on that date for the consolidated statement of financial position of Parent, Inc. and its subsidiary are shown below: Stockholder's Equity Subsidiary P2,437,500 1,584,375 Investment in Subsidiary 853,125 Non - Controlling Interest Inventory 62,500 Equipment 312,500 Patent 61,250 Goodwill Investment in Subsidiary 468,750 Non Controlling Interest ncluded in the purchase price is a control premium of P68,750. The amount of goodwill to be reported n the consolidated statement of financial position on July 01, 2021, assuming non-controlling interest s measured at fair value.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:On July 01, 2021, Parent, Inc. acquired most of the outstanding common stock of Subsidiary Company
for cash. The incomplete working paper elimination entries on that date for the consolidated statement
of financial position of Parent, Inc. and its subsidiary are shown below:
Stockholder's Equity Subsidiary
P2,437,500
Investment in Subsidiary
1,584,375
853,125
Non - Controlling Interest
Inventory
62,500
Equipment
312,500
Patent
61,250
Goodwill
?
Investment in Subsidiary
468,750
Non Controlling Interest
Included in the purchase price is a control premium of P68,750. The amount of goodwill to be reported
in the consolidated statement of financial position on July 01, 2021, assuming non-controlling interest
is measured at fair value.
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