Reference no: EM132698000

Problem - NOBITA Corporation acquired 65 percent of ZONEYO Corporation's common stock on December 31, 2018. ZONEYO's statement of financial position immediately before the combination reflected the following balances:

Cash and receivables	P120,000
Inventory	210,000
Land	270,000
Building and equipment	750,000
Total Assets	P1,350,000
Accounts payable	P90,000
Income tax payable	120,000
Bonds payable	300,000
Ordinary shares	300,000
Retained earnings	540,000
Total equities	P1,350,000

A review of the fair value of ZONEYO's assets and liabilities indicated that inventory, land, and buildings and equipment had fair values of P 195,000, P300,000, and P900,000 respectively. All other assets and liabilities have book value equal to their fair value.

1. Assuming NOBITA paid P800,000 for 65% of the outstanding shares of ZONEYO and the fair value of the non-controlling interest at the date of acquisition was determined to be P400,000, how much is the goodwill/(income for acquisition) to be reported in the consolidated statement of financial position of NOBITA Corporation?

2. Assuming NOBITA paid P600,000 for 65% of the outstanding shares of ZONEYO and the fair value of the non-controlling interest at the date of acquisition was determined to be P320,000, how much is the goodwill/(income for acquisition) to be reported in the consolidated statement of financial position of NOBITA Corporation?

3. Assuming NOBITA paid P715,000 for 65% of the outstanding shares of ZONEYO, how much is the goodwill/(income for acquisition) to be reported in the consolidated statement of financial position of NOBITA Corporation?

4. Assuming NOBITA paid P650,000 for 65% of the outstanding shares of ZONEYO, how much is the goodwill/(income for acquisition) to be reported in the consolidated statement of financial position of NOBITA Corporation?