PF Inc. acquired a 25% interest in RS Co years ago. On January 1, 20x1, PF acquired an additional 50% interest in RS for P500,000. On this date, RS's net identifiable assets have a fair value of P900,000, and PF's previous investment in RS has a carrying amount of P250,000 and a fair value of P280,000. PF opted to value the NCI at a proportionate share. How much is the goodwill?

PF Inc. acquired a 25% interest in RS Co years ago. On January 1, 20x1, PF acquired an additional 50% interest in RS for P500,000. On this date, RS's net identifiable assets have a fair value of P900,000, and PF's previous investment in RS has a carrying amount of P250,000 and a fair value of P280,000. PF opted to value the NCI at a proportionate share. How much is the goodwill?

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter10: Cost Recovery On Property: Depreciation, Depletion, And Amortization

Section: Chapter Questions

Problem 62P

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