On May 1, 2021, Taurus Inc acquired most of the outstanding shares of Glock Co for cash. The incomplete working paper elimination entries on that date for the consolidated statement of financial position of Taurus Inc and its subsidiary are shown below: Stockholders' equity-Glock 2,437,500 Investment in Glock 1,584,375 Non-controlling interest 853,125 Inventories 62,500 Equipment 312,500 Patent 61,250 Goodwill Investment in Glock 468,750 ? Non-controlling interest The purchase price of Taurus Inc included a control premium of P68,750. Determine the amount of goodwill to be reported in the consolidated statement of financial position on May 1, 2021 if the non-controlling interest is assumed to be measured at fair value.
On May 1, 2021, Taurus Inc acquired most of the outstanding shares of Glock Co for cash. The incomplete working paper elimination entries on that date for the consolidated statement of financial position of Taurus Inc and its subsidiary are shown below: Stockholders' equity-Glock 2,437,500 Investment in Glock 1,584,375 Non-controlling interest 853,125 Inventories 62,500 Equipment 312,500 Patent 61,250 Goodwill Investment in Glock 468,750 ? Non-controlling interest The purchase price of Taurus Inc included a control premium of P68,750. Determine the amount of goodwill to be reported in the consolidated statement of financial position on May 1, 2021 if the non-controlling interest is assumed to be measured at fair value.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Taurus-Glock
Transcribed Image Text:On May 1, 2021, Taurus Inc acquired most of the outstanding shares of Glock Co for cash. The incomplete working paper
elimination entries on that date for the consolidated statement of financial position of Taurus Inc and its subsidiary are
shown below:
Stockholders' equity-Glock
2,437,500
Investment in Glock
1,584,375
Non-controlling interest
853,125
Inventories
62,500
Equipment
312,500
Patent
61,250
Goodwill
?
Investment in Glock
468,750
Non-controlling interest
The purchase price of Taurus Inc included a control premium of P68,750.
Determine the amount of goodwill to be reported in the consolidated statement of financial position on May 1, 2021 if
the non-controlling interest is assumed to be measured at fair value.
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