Reference no: EM132621836

Question - The Moon acquired a 70% interest in the Swain Co. for P1,420,000 when the fair vaue of Swain's identifiable net assets and liabilities was P1,200,000. Also, Moon acquired a 65% interest in Hadji co. for P300,000 when the fair value of Hadji's identifiable net assets and liabilities was P640,000. Moon measures NCI at the relevant share of the identifiable net assets at the acquisition date.

Neither Swain nor Hadji had any contingent liabilities at the acquisition date and the above fair values were the same as carrying amounts in their financial statements. Annual impairment reviews have not resulted in any impairment losses being recognized.

What figures in respect of goodwill and gains on bargain purchase should be included in Moon's consolidated statement of financial position?

a. Goodwill 580,000, Gain on bargain purchase 116,000

b. Goodwill None, Gain on bargain purchase 116,000

c. Goodwill None, Gain on bargain purchase None

d. Goodwill 580,000, Gain on bargain purchase None