On January 1, 2017, Unilever Corporation purchased 75% of the ordinary shares of High Tide Enterprises....

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On January 1, 2017, Unilever Corporation purchased 75% of the ordinary shares of High Tide Enterprises. Separate balance sheet for the two companies at the combination date are given below Accounts Current assets Land Plant assets Accumulated depreciation Inv. In High Tide Ent. Totals Unilever High Tide P120,000 P108,000 Accounts payable Ordinary shares Retained earnings Totals 31,200 280,000 (96,000) 156,800 492,000 82,400 320,000 216,800 56,800 120,000 40,000 216,800 At the date of combination, the net assets of High Tide are fairly valued, except for its inventory which is understated by P8,800. The amount of non-controlling interests assigned at the said date is their proportionate share on the fair value of identifiable net assets. Determine the amount of goodwill to be recognized in the consolidated balance sheet at January 1, 2017 12,800 89,600 492,000 120,000 (24,000) On January 1, 2017, Unilever Corporation purchased 75% of the ordinary shares of High Tide Enterprises. Separate balance sheet for the two companies at the combination date are given below Accounts Current assets Land Plant assets Accumulated depreciation Inv. In High Tide Ent. Totals Unilever High Tide P120,000 P108,000 Accounts payable Ordinary shares Retained earnings Totals 31,200 280,000 (96,000) 156,800 492,000 82,400 320,000 216,800 56,800 120,000 40,000 216,800 At the date of combination, the net assets of High Tide are fairly valued, except for its inventory which is understated by P8,800. The amount of non-controlling interests assigned at the said date is their proportionate share on the fair value of identifiable net assets. Determine the amount of goodwill to be recognized in the consolidated balance sheet at January 1, 2017 12,800 89,600 492,000 120,000 (24,000)

Answer rating: 100% (QA)

SOLUTION To determine the amount of goodwill we first need to calculate the fair value of the identi... View the full answer