Parent Company acquired 18,000 shares of S Company's ordinary share on January 1, 2021, for payment...

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Parent Company acquired 18,000 shares of S Company's ordinary share on January 1, 2021, for payment of P3,000,000 when S Company's stockholders' equity section appeared as follows: Ordinary Share, P100 par, 25,000 shares issued Share Premium Retained Earnings Total Stockholders' Equity P2,500,000 700,000 800,000 200,000 Assets and liabilities of S Company has book values approximately equal to their fair values except for its inventory with a book value of P100,000 and a fair value of P130,000 and land with a book value of P400,000 and a fair value of P420,000. Assuming the use of full-goodwill approach, compute for the goodwill. Parent Company acquired 18,000 shares of S Company's ordinary share on January 1, 2021, for payment of P3,000,000 when S Company's stockholders' equity section appeared as follows: Ordinary Share, P100 par, 25,000 shares issued Share Premium Retained Earnings Total Stockholders' Equity P2,500,000 700,000 800,000 200,000 Assets and liabilities of S Company has book values approximately equal to their fair values except for its inventory with a book value of P100,000 and a fair value of P130,000 and land with a book value of P400,000 and a fair value of P420,000. Assuming the use of full-goodwill approach, compute for the goodwill.

Answer rating: 100% (QA)

Answer Solution i Fair value of S Company Consideration ... View the full answer