On July 1, 2018, Alpha Co. acquired most of the outstanding voting stocks of Roger Co. for cash. The incomplete working paper elimination entries on that date for the consolidated statement of financial position of Alpha Co. and its subsidiary are shown below: Common stock - Roger 1,500,000 Share premium - Roger 937,500 Investment in Roger 1,584,375 Non-controlling Interest 853,125 Inventories 62,500 Equipment 312,500 Patent 61,250 Investment in Roger ? Non-controlling Interest ? Goodwill ? Investment in Roger 185187.5 Non-controlling Interest ? Included in the purchase price is a control premium of P68,750. Compute for the amount of goodwill to be reported in the consolidated statement of financial position on July 1, 2018 assuming non-controlling interest is measured at fair value. The fair value of the non-controlling interest is P1,150,000.
On July 1, 2018, Alpha Co. acquired most of the outstanding voting stocks of Roger Co. for cash. The incomplete working paper elimination entries on that date for the consolidated
|
Common stock - Roger |
1,500,000 |
|
|
Share premium - Roger |
937,500 |
|
|
Investment in Roger |
1,584,375 |
|
|
Non-controlling Interest |
853,125 |
|
|
Inventories |
62,500 |
|
|
Equipment |
312,500 |
|
|
Patent |
61,250 |
|
|
Investment in Roger |
? |
|
|
Non-controlling Interest |
? |
|
|
|
? |
|
|
Investment in Roger |
185187.5 |
|
|
Non-controlling Interest |
? |
Included in the purchase price is a control premium of P68,750.
Compute for the amount of goodwill to be reported in the consolidated statement of financial position on July 1, 2018 assuming non-controlling interest is measured at fair value. The fair value of the non-controlling interest is P1,150,000.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
