Parent Company purchased 35% interest in Sub Company for P5,600,000 on July 15, 2020. Parent already held a 25% interest purchased for P3,000,000. As of this date, the carrying value of the identifiable net assets of Sub totaled P17,000,000. The carrying value of the identifiable net assets of Sub equal their fair values except for the undervaluation of Inventories and Machineries by P200,000 and P1,000,000 respectively. The fair value of the noncontrolling interest on July 15, 2020 is P7,000,000. How much is the gain on bargain purchase to be recoanized as a result of the business combination? *

Parent Company purchased 35% interest in Sub Company for P5,600,000 on July 15, 2020. Parent already held a 25% interest purchased for P3,000,000. As of this date, the carrying value of the identifiable net assets of Sub totaled P17,000,000. The carrying value of the identifiable net assets of Sub equal their fair values except for the undervaluation of Inventories and Machineries by P200,000 and P1,000,000 respectively. The fair value of the noncontrolling interest on July 15, 2020 is P7,000,000. How much is the gain on bargain purchase to be recoanized as a result of the business combination? *

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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