Parlor Company acquires 75% of Saloon Company's common stock for P225,000 cash. At that date, the non-controlling interest in Saloon has a book value of P52,500 and a fair value of P72,000. Also on that date, Saloon reports identifiable assets with a book value of P400,000 and a fair value of P510,000 and it has liabilities with a book value and a fair value of P190,000. Goodwill or (Gain on bargain purchase) arising on consolidation if fair value of net identifiable assets is to be valued on the full (fair value) basis?
Parlor Company acquires 75% of Saloon Company's common stock for P225,000 cash. At that date, the non-controlling interest in Saloon has a book value of P52,500 and a fair value of P72,000. Also on that date, Saloon reports identifiable assets with a book value of P400,000 and a fair value of P510,000 and it has liabilities with a book value and a fair value of P190,000. Goodwill or (Gain on bargain purchase) arising on consolidation if fair value of net identifiable assets is to be valued on the full (fair value) basis?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Parlor Company acquires 75% of Saloon Company's common stock for P225,000 cash. At that date, the
non-controlling interest in Saloon has a book value of P52,500 and a fair value of P72,000. Also on that
date, Saloon reports identifiable assets with a book value of P400,000 and a fair value of P510,000 and it
has liabilities with a book value and a fair value of P190,000. Goodwill or (Gain on bargain purchase) arising
on consolidation if fair value of net identifiable assets is to be valued on the full (fair value) basis?
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