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How much is the goodwill and gain on bargain purchase

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Problem 1: On January 1, 20x1, ABC Co., acquired 60% interest in XYZ Inc., for P2 million cash. ABC Co., incurred transaction costs of P100,000 in the business combination. ABC Co., elected to measure Non-Controlling Interest (NCI) at NCI's proportionate share in XYZ Inc., identifiable net assets. The fair value of XYZ's identifiable net assets and liabilities at the acquisition date were P6,000,000 and P3,500,000 respectively. How much is the goodwill, gain on bargain purchase?

a) P500,000        c) P(500,000)
b) P478,000        d) P(478,000)

Reference no: EM132756971

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