Parent Company acquired Subsidiary Company in two stages: In 2017, Parent acquired a 30% equity interest for cash consideration of P320,000 when the fair value of Subsidiary’s identifiable net assets was P800,000. In 2021, Parent acquired a further 50% equity interest for cash consideration of P750,000. On the acquisition date, the fair value of Subsidiary’s identifiable net assets was P920,000. The fair value of Parent’s original 30% holding was P400,000 and the fair value of the non-controlling interest is assessed as P280,000. NCI is measured at their share of net assets. What is the amount of goodwill (gain or bargain purchase) from the step acquisition?
Parent Company acquired Subsidiary Company in two stages: In 2017, Parent acquired a 30% equity interest for cash consideration of P320,000 when the fair value of Subsidiary’s identifiable net assets was P800,000. In 2021, Parent acquired a further 50% equity interest for cash consideration of P750,000. On the acquisition date, the fair value of Subsidiary’s identifiable net assets was P920,000. The fair value of Parent’s original 30% holding was P400,000 and the fair value of the non-controlling interest is assessed as P280,000. NCI is measured at their share of net assets. What is the amount of goodwill (gain or bargain purchase) from the step acquisition?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Parent Company acquired Subsidiary Company in two stages:
- In 2017, Parent acquired a 30% equity interest for cash consideration of P320,000 when the fair value of Subsidiary’s identifiable net assets was P800,000.
- In 2021, Parent acquired a further 50% equity interest for cash consideration of P750,000. On the acquisition date, the fair value of Subsidiary’s identifiable net assets was P920,000. The fair value of Parent’s original 30% holding was P400,000 and the fair value of the non-controlling interest is assessed as P280,000.
NCI is measured at their share of net assets. What is the amount of
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