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How much is the fair value of the net assets of sub company

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Question - Parent Corporation acquired 80% of the outstanding voting stock of Sub Company for P4,500,000 on January 1, 2020 and paid P50,000 for direct acquisition related costs. On this date, Sub Company's stockholders' equity is composed of:

Share capital - P2,000,000

Share premium - 1,200,000

Retained earnings - 1,600,000

The excess of cost over book value of interest acquired is allocated as follows: 10% to undervalued inventory, 40% to undervalued plant assets, and the remainder, to goodwill. NCI is measured at fair value. How much is the fair value of the net assets of Sub Company?

Reference no: EM133118610

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