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Determine the amount of goodwill

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Question - Papa Corporation issues three (3) shares in exchange for each ordinary share of Sansa Company. All of Sansa Company's shareholders exchange their shares. Thus, Papa Corporation issues 150 shares in exchange for all 50 shares of S Company.

The fair value of each share of Sansa Company is P30. The quoted market price of Papa Corporation's shares on the said date is P22.50 per share.

The fair value of Papa Corporation's identifiable assets and liabilities are the same as their book values, except for its non-current assets which have a fair value of P1,500.

Required -

1. Solve for the fair value of consideration transferred.

2. Determine the amount of goodwill.

3. Prepare the consolidated statement of financial position.

Reference no: EM132935712

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