Windell Inc. acquired 85% of the outstanding voting shares of Ralph Corp for P1,500,000. On the acquisition date, Ralph's identifiable assets and liabilities have fair values of P6,000,000 and P4,700,000, respectively. Windell opts to measure the non-controlling at a fair value of P300,000. How much is the goodwill (gain on bargain purchase) as a result of the business combination?

Q: Polypipe Company acquired 80% of Svedex Company’s voting stock for $95,000 in cash. The…

A: Noncontrolling interest, also known as minority interest, refers to the portion of a subsidiary's…

Q: CALUM Co. paid P150,000 for its 75% interest in LUKE Co. CALUM elected to value NCI at fair value.…

A: Non Controlling Interest (NCI) : (1) For calculating NCI, the Book Value or Net Asset Value of the…

Q: Putt Corporation acquired 80 percent of Slice Company's voting common stock on January 1, 20X4, for…

A: Consolidation entry is recorded by the holding company to consolidate the accounts of its subsidiary…

Q: Protrade Corporation acquired 80 percent of the outstanding voting stock of Seacraft Company on…

A: A consolidation worksheet is a spreadsheet that is used to create annual financial reports for a…

Q: Summer Company holds assets with a fair value of $122,000 and a book value of $81,000 and…

A: INTRODUCTION: A liability is a company's responsibility to pay money to other persons or businesses…

Q: What is the total amount of goodwill recognized at the date of acquisition?

A: Step 1 : Introduction to Goodwill:Goodwill is an intangible asset created when a company purchases…

Q: e Sylvia Company acquired a 70% interest in The Clarke Company for 1,420,000 when  the fair value of…

A: Goodwill: It is the difference between consideration paid and net identifiable assets. in the given…

Q: Practical Corporation acquired all of the common stock of Simple Company for $450,000 on January 1,…

A: Goodwill refers to an intangible asset that is recorded in the balance sheet. Goodwill is reported…

Q: Panda Company purchased an 80% interest of Bear Company on July 1, 2013. The consideration…

A: Answer:- Goodwill means:- Put succinctly, goodwill is an intangible asset that represents the…

Q: Ryan Limited acquired 80% of the shares in Tully Limited for $165 000. At acquisition date, share…

A: Goodwill under the full goodwill method is the difference between the amount paid as consideration…

Q: Summer Company holds assets with a fair value of $124,000 and a book value of $96,000 and…

A: ConsolidationThe combination of one or two elements is called consolidation. When a company acquires…

Q: Professor Corporation acquired 70 percent of Scholar Corporation's common stock on December 31,…

A: Once the consolidated worksheet adjustments have been made, the consolidated financial statements…

Q: Hot Inc. owns 60% of Cold Inc, which it purchased on January 1, 2019 for $540,000. On that date,…

A: Working note: Computation of fair value of identifiable net assets and non-controlling interest of C…