will be the amount of goodwill that would be reported immediately after the combination under the accounting practice if the option of full-goodwill method is used?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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On January 1, 2019, Lady Gaga Company acquires 80 percent ownership in Madonna Company for P200,000. The fair value of the non-controlling interest at that time is determined to be P50,000. Madonna Company reports net assets with a book value of P200,000 and fair value of P230,000. Lady Gaga Company reports net assets with a book value of P600,000 and a fair value of P650,000 at that time, excluding its investment in Madonna Company. What will be the amount of goodwill that would be reported immediately after the combination under the accounting practice if the option of full-goodwill method is used?

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