2. The Statement of Financial Position (SFP) of Arthur Corporation on June 30, 202X is presented below: Current Assets P195,000 1,320,000 660,000 525,000 P2,700,000 Land Building Equipment Total Assets P525,000 Ordinary Shares, P5 par 900,00 825,000 450,000 P2,700,000 Liabilities Share Premium Retained Earnings Total Equities All the assets and liabilities of Arthur were assumed to approximate their fair val- ues except for land and building. It is estimated that the land has a fair value of P2,100,000, and the fair value of the building increased by P480,000. Ezekeil Cor- poration acquired 80% of Arthur's outstanding shares for P3,000,000. The non- controlling interest is measured at fair value. Required:

2. The Statement of Financial Position (SFP) of Arthur Corporation on June 30, 202X is presented below: Current Assets P195,000 1,320,000 660,000 525,000 P2,700,000 Land Building Equipment Total Assets P525,000 Ordinary Shares, P5 par 900,00 825,000 450,000 P2,700,000 Liabilities Share Premium Retained Earnings Total Equities All the assets and liabilities of Arthur were assumed to approximate their fair val- ues except for land and building. It is estimated that the land has a fair value of P2,100,000, and the fair value of the building increased by P480,000. Ezekeil Cor- poration acquired 80% of Arthur's outstanding shares for P3,000,000. The non- controlling interest is measured at fair value. Required:

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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2. The Statement of Financial Position (SFP) of Arthur Corporation on June 30, 202X is presented below: Current Assets Land P195,000 1,320,000 660,000 525,000 Building Equipment Total Assets P2,700,000 Liabilities Ordinary Shares, P5 par Share Premium Retained Earnings Total Equities P525,000 900,00 825,000 450,000 P2,700,000 All the assets and liabilities of Arthur were assumed to approximate their fair values except for land and building. It is estimated that the land has a fair value of P2,100,000, and the fair value of the building increased by P480,000. Ezekeil Corporation acquired 80% of Arthur's outstanding shares for P3,000,000. The non-controlling interest is measured at fair value. Required: a. Determine the goodwill or gain on bargain purchase assuming the consideration paid includes control premium of P852,000. b. Determine the goodwill or gain on bargain purchase assuming the consideration paid excludes control premium of P138,000 and the fair value of the non-controlling…
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