How much goodwill appear in the consolidated balance sheet

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Question - Separate Statement of Financial Position for P Corporation and S Corporation at December 31, 2021 are as follows:

 

P CORP

S CORP

CASH

50,000

20,000

OTHER CURRENT ASSET

150,000

80,000

LAND

300,000

50,000

BUILDINGS AND EQUIPMENT

600,000

200,000

LESS: ACCUMULATED DEPRECIATION

(200,000)

(50,000)

TOTAL ASSETS

900,000

300,000

CURRENT LIABILITIES

100,000

50,000

ORDINARY SHARE CAPITAL, P10 PAR

600,000

100,000

SHARE PREMIUM

60,000

75,000

RETAINED EARNINGS

140,000

75,000

TOTAL EQUITIES

900,000

300,000

P issued 10,000 shares of its own ordinary shares with a market value of P300,000 on January 2, 2022 in exchange for 80% of S's outstanding shares. All of S's assets and liabilities were recorded at their fair values except for buildings and equipment that had a fair value of P170,000 and remaining useful life of 5 years. P Corporation measure the non controlling interest at its fair market value.

Required -

1. How much Goodwill should appear in the consolidated balance sheet prepared immediately after the business combination?

2. At what amount would Building and Equipment, net of accumulated depreciation, should appear in P's consolidated balance sheet prepared on January 2, 2022, immediately after the business combination?

3. How much is the consolidated equity as of date of acquisition?

Reference no: EM133067633

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