The Lampara Company acquired a 70% interest in the Oak Company for P1,960,000 when the fair...

Transcribed Image Text:

The Lampara Company acquired a 70% interest in the Oak Company for P1,960,000 when the fair value of Oak's identifiable assets and liabilities was P700,000 and elected to measure the non-controlling interest at its share of the identifiable net assets. Annual impairment reviews of goodwill have not resulted in any impairment losses being recognized. Oak's current statement of financial position shows share capital of P100,000, a revaluation reserve of P300,000 and retained earnings of P1,400,000. What figure in respect of goodwill should now be carried in Lampara's consolidated statement of financial position? The Lampara Company acquired a 70% interest in the Oak Company for P1,960,000 when the fair value of Oak's identifiable assets and liabilities was P700,000 and elected to measure the non-controlling interest at its share of the identifiable net assets. Annual impairment reviews of goodwill have not resulted in any impairment losses being recognized. Oak's current statement of financial position shows share capital of P100,000, a revaluation reserve of P300,000 and retained earnings of P1,400,000. What figure in respect of goodwill should now be carried in Lampara's consolidated statement of financial position?

Answer rating: 100% (QA)

To determine the figure of goodwill to be carried in Lamparas consolidated statement of financial po... View the full answer