On July 1, 2021, ABC Co. Acquired 99% of the outstanding ordinary share capital of DEF Co for P990,000 cash. The remaining was held by a shareholder who was unwilling to sell the share. DEF's net assets had a book value of P950,000 and a fair market value of P50,000 more than the carrying value when it was acqured by ABC. The Non-controlling interest using the full goodwill method should be reported at 10,000 10,500 9,000 9,900

On July 1, 2021, ABC Co. Acquired 99% of the outstanding ordinary share capital of DEF Co for P990,000 cash. The remaining was held by a shareholder who was unwilling to sell the share. DEF's net assets had a book value of P950,000 and a fair market value of P50,000 more than the carrying value when it was acqured by ABC. The Non-controlling interest using the full goodwill method should be reported at 10,000 10,500 9,000 9,900

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter12: Intangibles

Section: Chapter Questions

Problem 18E

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On July 19, 2021, SUNOB acquired 60% of the outstanding shares of YSAE. The business combination resulted to a gain on bargain purchase of P200,000. The consideration paid was exactly the fair value for the 60% outstanding stocks, and the fair value of the non-controlling interest is not given. Fair value of the net assets of YSAE amounted to P1,000,000 on that date. How much is the gain on acquisition attributable to SUNOB? a. 600,000 b. 120,000 c. Zero d. 200,000
On July 19, 2021, SUNOB acquired 60% of the outstanding shares of YSAE. The business combination resulted to a gain on bargain purchase of P200,000. The consideration paid was exactly the fair value for the 60% outstanding stocks, and the fair value of the non-controlling interest is not given. Fair value of the net assets of YSAE amounted to P1,000,000 on that date. How much is the gain on acquisition attributable to SUNOB? Group of answer choices a.600,000 b.120,000 c.Zero d.200,000
On July 19, 2021, SUNOB acquired 60% of the outstanding shares of YSAE. The business combination resulted to a gain on bargain purchase of P200,000. The consideration paid was exactly the fair value for the 60% outstanding stocks, and the fair value of the non-controlling interest is not given. Fair value of the net assets of YSAE amounted to P1,000,000 on that date. How much is the gain on acquisition attributable to SUNOB? Zero 600,000 200,000 120,000
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