Question: KINDLY ANSWER WITH COMPLETE SOLUTION AND EXPLANATION Acquirer Company acquires 25% of Acquired Company's common stock for P190, 000 cash and carries the investment using

KINDLY ANSWER WITH COMPLETE SOLUTION AND EXPLANATION

Acquirer Company acquires 25% of Acquired Company's common stock for P190, 000 cash and carries the investment using the cost method. After three months, Parent purchases another 60% of Subsidiary's common stock for P540, 000. On this date, acquired company reports identifiable assets with carrying value of P720,000 and fair value of P920, 000. The liabilities of the acquired company has a book value and a fair value of P280, 000. The fair value of the 15% non-controlling interest is P125, 000.

How much is the goodwill or (gain on acquisition)?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Visual Imagery, Inc. In the late-1970s, the American Business Machines Corporation (ABM) developed a process for transferring holographic images to a two-dimensional plane without losing the essence...

Acquirer Company acquires 25% of Acquired Companys common stock for P190,000 cash and carries the investment using the cost method. After three months, Parent purchases another 60% of Subsidiarys...

PROBLEM 7. Acquirer Company acquires 25% of Acquired Company's common stock for P190,000 cash and carries the investment using the cost method. After three months, Parent purchases another 60% of...

Task 2 (10 points). Note: In this question you should assume that the activation function of a perceptron is the step function. More specifically, this function: outputs 0 if the weighted sum of...

1. Securities which could be classified as held-to-maturity are a. redeemable preferred stock. b. warrants. c. municipal bonds. d. treasury stock. 2. Unrealized holding gains or losses which are...

2012 Annual Report Our \"bottom line\" ultimately depends on our ability to satisfy all of our stakeholders. Our goal is to balance the needs and desires of our customers, team members, shareholders,...

I am looking for the correct answer for this Q .. Can you help me :) I need also steps with Calculatorplz Thanks....

Hello, I need help figuring out the adjusting entries on this case study, I have completed the general entries but am having a hard time with the adjusting. Attached are what I have done and the...

Hi Again, I have alot of stuff due this time. Sorry im just now telling you. Question 1 options: The Washington Company has 100,000 shares of $10 par common stock outstanding. Management declares...

Find: a. Cumalative Frequencies for each score. b. Percentile Ranks for each score. c. The 5th, 15th, 30th, 85th, and 95th Percentiles. d. The First, Second and Third Percentiles, Q Q2 Q3...

Sales on account for the first two months of the current year are budgeted as follows: Jan. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $700,000 Feb. . . . . . . . . ....

The main comic strategy in the contract scene is discomfort of another: both of the men are uncomfortable with the contract. incongruity, it uses several verbal puns and ends with a big oun....

A hydro-turbine is proposed for a dam with an estimated gross head of 20.5 m and a flow rate of 4.52m 3 /s. The generator is to turn at 120 rpm. You are required to identify (K5) the type of turbine...

You are working for a public accounting firm in Melbourne. One of your friends is working for Bayswater, a publicly listed company that is required to prepare its half-yearly (i.e. six month)...

Q1. Discuss the role of technology in modern supply chains in a 200 word introduction using intext references and a reference list. Those are number of specific examples of technologies that are in...

Briefly explain in your own words the following: What does a balance sheet convey to readers? What makes a balance sheet useful? What are the limitations of a GAAP balance sheet? What role do...

The three types of vehicle searches are: simple, complex and complete. visual, simple and complete. visual, complex and complete

3. Mymanagementlab Only - comprehensive writing assignment for this chapter.pg 87

5. Describe the main retirement benefits.pg 87

5. Explain how ERISA protects employees pension rights.pg 87