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What account shall be debited

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Reference no: EM132924330

Question - Use the following information in answering the requirements of nos. 1, 2 and 3.

1. Entity Z acquires 85% of the outstanding voting shares of entity R for P3,000,000. On acquisition date, Entity R's identifiable assets and liabilities have fair values equivalent to P5,000,000 and P2,000,000 respectively. How much is the goodwill if Entity Z opts to measure the non-controlling interest at the NCI's proportionate share in Entity R's net identifiable assets?

2. Entity M opts measuring the non-controlling interest at fair value to be P650,000. How much is the goodwill?

3. If the carrying amount and fair values of the identifiable assets in no. 1, includes goodwill of P100,000 and P20,000 respectively, compute for the goodwill.

4. If ABC's retained earnings is a Deficit and the transaction costs incurred amounted to P40,000, what account shall be debited/(credited) assuming share premium is insufficient?

5. If an acquirer acquired 90% of an acquiree's interest for P1M and the remaining has an assessed value of P50,000. What does P50,000 represent?

6. When the amount of considerations paid is less than the fair value of net identifiable assets acquired, what is that?

Reference no: EM132924330

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