Reference no: EM132876229
Question - P Company acquires 15% of S Company's ordinary shares for P500,000 cash and carries the investment using the equity method. A few months later, Parent purchases another 60% of S's ordinary shares for P2,160,000. At that date, S Company reports identifiable assets with a book value of P3,900,000 and a fair value of P5,100,000, and it has liabilities with a book value and fair value of P1,900,000.
WHAT IS THE AMOUNT OF THE:
A. Goodwill arising from the consolidation if it is to be computed using the proportionate basis or "Partial Goodwill"
B. Goodwill arising from the consolidation if it is to be computed using the full (fair value basis of "Full/Gross-up" Goodwill.
C. Goodwill arising from the consolidation if The fair value of the 25% non controlling interest in Subsidiary Company is P890,000.