Reference no: EM133042652
Question - On January 1, 2020, Entity A acquires 30,000 out of 100,000 outstanding ordinary shares of Entity B for P90,000. For the six months ended June 30, 2020, Entity B reported net income of P40,000.
On July 1, 2020, Entity A acquires additional 60,000 ordinary shares of Entity B at a price of P240,000. Entity A paid P20,000 acquisition related costs and P10,000 indirect costs of business combination.
The acquisition price of per share of the additional shares clearly reflects the fair value of the existing interest of Entity A on Entity B. It is the policy of Entity A to initially measure the noncontrolling interest in net assets of the acquiree at fair value. The fair value of the noncontrolling interest in net assets of the acquire is appraised at P50,000.
At the acquisition date, the net assets of Entity B are reported at P400,000. An asset of Entity B is overvalued by P50,000 while one of its liability is overvalued by P30,000.
What is the goodwill or (gain on bargain purchase) as a result of business combination?
|
Discuss financial and ethical implications of otis decision
: Applying Legal Knowledge to Business Organization, Agency, Liability, and Contracts - Should Otis use the artificial sweetener? Discuss both the financial
|
|
What is the profit margin for the current year for Bornfree
: Selling and distribution expenses 220,000 and Administration expenses 120,000. What is the profit margin for the current year for Bornfree
|
|
What is operating cash flow each year
: What is operating cash flow each year? what is the net present value of this investment? should the company accept or reject this project
|
|
Discuss the positives and negatives of organizational change
: Discuss the positives and negatives of organizational change and Discuss approaches managers should use with employees to get them to embrace change
|
|
What is the goodwill as a result of business combination
: At the acquisition date, the net assets of Entity B are reported at P400,000. What is the goodwill as a result of business combination
|
|
What is the option value
: Assume that you have been given the following information on Purcell Industries' call options: Current stock price = $16. What is the option value
|
|
How should Valerie and Miller record these transactions
: Miller Corporation promises to unconditionally transfer building that cost $100,000 to Valerie Company on January 1, How Valerie and Miller record transactions
|
|
Calculate the expected dividend
: Its capital budget for the following year reaches $ 40 million and projects a profit of $ 30 million, calculate the expected dividend
|
|
Prepare Tessier Corp office space lease journal entries
: The final agreement was based on current market leasing values of approximately $80,000/month. Prepare Tessier Corp office space lease journal entries
|