Parent Company acquired Subsidiary Company in two stages: • In 2017, Parent acquired a 30% equity interest for cash consideration of P320,000 when the fair value of Subsidiary's identifiable net assets was P800,000. • In 2021, Parent acquired a further 50% equity interest for cash consideration of P750,000. On the acquisition date, the fair value of Subsidiary's identifiable net assets was P920,000. The fair value of Parent's original 30% holding was P400,000 and the fair value of the non-controlling interest is assessed as P280,000. NCI is measured at their share of net assets. What is the amount of goodwill (gain or bargain purchase) from the step acquisition?
Parent Company acquired Subsidiary Company in two stages: • In 2017, Parent acquired a 30% equity interest for cash consideration of P320,000 when the fair value of Subsidiary's identifiable net assets was P800,000. • In 2021, Parent acquired a further 50% equity interest for cash consideration of P750,000. On the acquisition date, the fair value of Subsidiary's identifiable net assets was P920,000. The fair value of Parent's original 30% holding was P400,000 and the fair value of the non-controlling interest is assessed as P280,000. NCI is measured at their share of net assets. What is the amount of goodwill (gain or bargain purchase) from the step acquisition?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
100%
question 22 help
Transcribed Image Text:Parent Company acquired Subsidiary Company in two stages:
• In 2017, Parent acquired a 30% equity interest for cash
consideration of P320,000 when the fair value of
Subsidiary's identifiable net assets was P800,000.
• In 2021, Parent acquired a further 50% equity interest for
cash consideration of P750,000. On the acquisition date,
the fair value of Subsidiary's identifiable net assets was
P920,000. The fair value of Parent's original 30% holding
was P400,000 and the fair value of the non-controlling
interest is assessed as P280,000.
NCI is measured at their share of net assets. What is the
amount of goodwill (gain or bargain purchase) from the step
acquisition?
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education