Pink Co. Acquires 80% controlling interest in Violet Co. For P1,200,000. Violet Co.'s identifiable assets and liabilities have fair values of P3,300,000 and P1,700,000, respectively. Included in Violet's assets is a web press machine with fair value of P900,000 which Pink Co. Intends to sell immediately. The machine qualifies for classification as "held fr sale". The costs to sell are P150,000. Pink Co. Opts to measure the non- controlling interest at fair value. How much is the goodwill? (Assume the fair value of the NCI is equal to the grossed-up value of the consideration transferred multiplied by the NCI percentage)

Pink Co. Acquires 80% controlling interest in Violet Co. For P1,200,000. Violet Co.'s identifiable assets and liabilities have fair values of P3,300,000 and P1,700,000, respectively. Included in Violet's assets is a web press machine with fair value of P900,000 which Pink Co. Intends to sell immediately. The machine qualifies for classification as "held fr sale". The costs to sell are P150,000. Pink Co. Opts to measure the non- controlling interest at fair value. How much is the goodwill? (Assume the fair value of the NCI is equal to the grossed-up value of the consideration transferred multiplied by the NCI percentage)

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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