TRICKY Company acquires 25% of JOKER Corporations ordinary shards for P190,000 cash and carries the investment using the cost method. After one quarter, TRICKY Company purchases another 60% of JOKER Corporation's ordinary shares for P540,000. On this data, JOKER Corporation reports identifiable net assets with carrying value of P720,000 and fair value of P920,000. The liabilities of JOKER Corporation has a book value and fair value of 280,000. The fair value of the 15% controlling interest is P125,000. How much is the goodwill or gain
TRICKY Company acquires 25% of JOKER Corporations ordinary shards for P190,000 cash and carries the investment using the cost method. After one quarter, TRICKY Company purchases another 60% of JOKER Corporation's ordinary shares for P540,000. On this data, JOKER Corporation reports identifiable net assets with carrying value of P720,000 and fair value of P920,000. The liabilities of JOKER Corporation has a book value and fair value of 280,000. The fair value of the 15% controlling interest is P125,000. How much is the goodwill or gain
Chapter9: Acquisitions Of Property
Section: Chapter Questions
Problem 44P
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Question
TRICKY Company acquires 25% of JOKER Corporations ordinary shards for P190,000 cash and carries the investment using the cost method. After one quarter, TRICKY Company purchases another 60% of JOKER Corporation's ordinary shares for P540,000. On this data, JOKER Corporation reports identifiable net assets with carrying value of P720,000 and fair value of P920,000. The liabilities of JOKER Corporation has a book value and fair value of 280,000. The fair value of the 15% controlling interest is P125,000.
How much is the
A. P250,000 goodwill
B. P17,000 goodwill
C. P250,000 gain on acquisition
D. P17,000 gain on acquisition
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