SG Company acquired 80% of Popsters Company on January 1, 2019, when the stockholders’ equity of Popsters consisted of: Ordinary shares, P100 par P500,000 Paid in capital in excess of par 400,000 Retained earnings 500,000 SG paid P1,500,000 for the interest acquired plus P100,000 for costs directly attributable to the acquisition and P20,000 for indirect costs. Popsters' carrying value of net assets is equal to their fair values. The amount of goodwill/(gain on bargain purchase) to be recognized from this combination, assuming SG Company is an SME is:

Answer rating: 100% (QA)

As per Philippine Financial Reporting Standards for Small and Mediumsized Entities PFRS for SMEs goo... View the full answer