1. Non-controlling interest arising from the consolidation if it is to be computed using the full (fair value basis of “Full/Gross-up” Goodwill, assuming the cost of acquisition includes a control premium of P400,000. 2. Goodwill arising from the consolidation if the non-controlling interest is stated at fair value of P2,000,000. 3. Goodwill arising from the consolidation if the 100,000, P50 par value shares of the subsidiary are currently selling at 90/share. 4. Assume Parent purchased 80% of Subsidiary shares for P6,300,000; determine the goodwill arising from the consolidation if the non-controlling interest is stated at fair value of P2,000,000.
Parent Company purchases 80% of the outstanding shares of Subsidiary Company for P9,000,000. The carrying value of Subsidiary
Company’s net assets at the time of acquisition was P6,000,000 and had a fair value of P8,000,000. Determine the following:
1. Non-controlling interest arising from the consolidation if it is to be computed using the full (fair value
basis of “Full/Gross-up”
P400,000.
2. Goodwill arising from the consolidation if the non-controlling interest is stated at fair value of
P2,000,000.
3. Goodwill arising from the consolidation if the 100,000, P50 par value shares of the subsidiary are
currently selling at 90/share.
4. Assume Parent purchased 80% of Subsidiary shares for P6,300,000; determine the goodwill arising
from the consolidation if the non-controlling interest is stated at fair value of P2,000,000.
Step by step
Solved in 3 steps with 3 images