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Tahimik Co. Acquires 80% controlling interest in Kapayapaan Co. For P1,200,000. Kapayapaan Co.’s identifiable assets and liabilities have fair values of P3,300,000 and P1,700,000, respectively. Included in Kapayapaan’s assets is a web press machine with fair value of P900,000 which Tahimik Co. Intends to sell immediately. The machine qualifies for classification as “held fr sale”. The costs to sell are P150,000. Tahimik 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) A. 50,000 B. 20,000 C. 40,000 D. 60,000

Tahimik Co. Acquires 80% controlling interest in Kapayapaan Co. For P1,200,000. Kapayapaan Co.’s identifiable assets and liabilities have fair values of P3,300,000 and P1,700,000, respectively. Included in Kapayapaan’s assets is a web press machine with fair value of P900,000 which Tahimik Co. Intends to sell immediately. The machine qualifies for classification as “held fr sale”. The costs to sell are P150,000. Tahimik 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) A. 50,000 B. 20,000 C. 40,000 D. 60,000

FINANCIAL ACCOUNTING
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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Tahimik Co. Acquires 80% controlling interest in Kapayapaan Co. For P1,200,000. Kapayapaan Co.’s identifiable assets and liabilities have fair values of P3,300,000 and P1,700,000, respectively. Included in Kapayapaan’s assets is a web press machine with fair value of P900,000 which Tahimik Co. Intends to sell immediately. The machine qualifies for classification as “held fr sale”. The costs to sell are P150,000. Tahimik 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)
A. 50,000
B. 20,000
C. 40,000
D. 60,000

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