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How much is the control premium

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Reference no: EM133130271

Question - Baguio Corp. acquired 80% of outstanding shares of Tagaytay Inc. the stock acquisition resulted to a goodwill of P700,000.

The consideration transferred by Baguio Corp. and fair value of net assets of Tagaytay Inc. amounted to P4,200,000 and 4,500,000, respectively.

Required - How much is the control premium? 

a. 100,000 

b. 200,000

c. 1,000,000

d. None of the above

Reference no: EM133130271

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