PLease show the complete solution. Thank you Mashiho Company acquires 18% of Junkyu Company’s stock for P700,000 cash and carries the investment as a financial asset. A few months later, Mashiho purchases another 70% percent of Junkyu Company’s stock for P2,520,000. At the said date, Junkyu Company reports identifiable assets with a book value of P3,900,000 and a fair value of P5,250,000. Its liabilities have a book and fair values of P1,500,000 and 1,900,000, Required: Determine the amount of goodwill or gain on bargain purchase that should be recognized if the non- controlling interest is measured on a proportionate Determine the amount of goodwill or gain on bargain purchase that should be recognized if the non- controlling interest is measured on a fair value
PLease show the complete solution. Thank you Mashiho Company acquires 18% of Junkyu Company’s stock for P700,000 cash and carries the investment as a financial asset. A few months later, Mashiho purchases another 70% percent of Junkyu Company’s stock for P2,520,000. At the said date, Junkyu Company reports identifiable assets with a book value of P3,900,000 and a fair value of P5,250,000. Its liabilities have a book and fair values of P1,500,000 and 1,900,000, Required: Determine the amount of goodwill or gain on bargain purchase that should be recognized if the non- controlling interest is measured on a proportionate Determine the amount of goodwill or gain on bargain purchase that should be recognized if the non- controlling interest is measured on a fair value
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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PLease show the complete solution. Thank you
Mashiho Company acquires 18% of Junkyu Company’s stock for P700,000 cash and carries the investment as a financial asset. A few months later, Mashiho purchases another 70% percent of Junkyu Company’s stock for P2,520,000. At the said date, Junkyu Company reports identifiable assets with a book value of P3,900,000 and a fair value of P5,250,000. Its liabilities have a book and fair values of P1,500,000 and 1,900,000,
Required:
- Determine the amount of
goodwill or gain on bargain purchase that should be recognized if the non- controlling interest is measured on a proportionate - Determine the amount of goodwill or gain on bargain purchase that should be recognized if the non- controlling interest is measured on a fair value
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