Weavile Company acquires 25% of Rhyperior Company's common stock for P380,000 cash and carries the investment using the cost method. After three months, Weavile purchases another 55% of Rhyperior's common stock for P1,100,000. On this date, Rhyperior reports identifiable assets with carrying value of P1,800,000 and fair value of P2,300,000 and it has liabilities with a book value and a fair value of P700.000. The fair value of the 20% non-controlling interest is P360,000.Goodwill valued on the fair value basis
Weavile Company acquires 25% of Rhyperior Company's common stock for P380,000 cash and carries the investment using the cost method. After three months, Weavile purchases another 55% of Rhyperior's common stock for P1,100,000. On this date, Rhyperior reports identifiable assets with carrying value of P1,800,000 and fair value of P2,300,000 and it has liabilities with a book value and a fair value of P700.000. The fair value of the 20% non-controlling interest is P360,000.Goodwill valued on the fair value basis
Chapter10: Cost Recovery On Property: Depreciation, Depletion, And Amortization
Section: Chapter Questions
Problem 62P
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Weavile Company acquires 25% of Rhyperior Company's common stock for P380,000 cash and carries the investment using the cost method. After three months, Weavile purchases another 55% of Rhyperior's common stock for P1,100,000. On this date, Rhyperior reports identifiable assets with carrying value of P1,800,000 and fair value of P2,300,000 and it has liabilities with a book value and a fair value of P700.000. The fair value of the 20% non-controlling interest is P360,000.
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