Consider the following alternative scenarios relating to an investor company P Co’s investment in another company, known as X Co.

Scenario: P Co increases ownership interest in X Co from 60% to 75%

Required

Determine the amounts of the following items (if any) arising at the date of the most recent transaction in each scenario:
1. New goodwill 2. Effects that are taken to the Income Statement

(a) Remeasurement gain or loss

(b) Profit or loss on sale of investment 3. Equity effects that are not taken to the Income Statement

(a) Profit or loss arising from changes in ownership

(b) Changes in non-controlling interests

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Details Purchase of initial investment of 60% interest in X Co on 1 January 2010 Fair value of consideration transferred.. Fair value of non-controlling interests.. Purchase of additional investment of 15% interest in X Co on 1 July 2011 Incremental purchase.... Non-controlling interests' balance as at 1 July 2011. Fair value of identifiable net assets of X Co... Book value of identifiable net assets of X Co.. Tax rate is 20% .. Ownership interest 60% 40% 15% Amount $13,000,000 6,000,000 4,500,000 7,500,000 22,000,000 19,000,000