THANProblem 1-19On January 1, 2022, P Company acquired a 50% interest in S Companyfor P60M. P Company already held 20% interest which had been acquiredfor P20M a year ago but which was valued at P24M at January 1, 2022.The book value of identifiable net assets of S Company on this date wasP115M. The price difference is allotted to property plant and equipmentwith 10 years remaining life as of date of acquisition. P Company opted tomeasure NCI at fair value.What amount of goodwill or gain on bargain purchase is recognized onthe date of acquisition?

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What amount of goodwill or gain on bargain purchase is recognized Onl the date of acquisition?

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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Question

THAN
Problem 1-19
On January 1, 2022, P Company acquired a 50% interest in S Company
for P60M. P Company already held 20% interest which had been acquired
for P20M a year ago but which was valued at P24M at January 1, 2022.
The book value of identifiable net assets of S Company on this date was
P115M. The price difference is allotted to property plant and equipment
with 10 years remaining life as of date of acquisition. P Company opted to
measure NCI at fair value.
What amount of goodwill or gain on bargain purchase is recognized on
the date of acquisition?

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