Solution For Activity On Consolidation at The Date of Acquisition
Solution For Activity On Consolidation at The Date of Acquisition
Solution For Activity On Consolidation at The Date of Acquisition
Computation of Goodwill
Computation
Consideration Transferred P 560,000
Add: Non-controlling interest in the acquire (fair P 600,000 x 30% 180,000
value)
Previously held equity interest in the acquiree 0
Total 740,000
Less: Fair value of net identifiable assets acquired Total FV of asset less Liabilities
(20,000+20,000+100,000+10,000+540,000-90,000) 600,000
Goodwill P 140,000
Elimination Entries: (To eliminate investment in subsidiary and recognize the changes in fair value of the asset and goodwill)
ASSETS
Current Assets
Cash P120,000
Accounts Receivable 140,000
Inventory 500,000
Prepaid Assets 40,000
Total Current Assets 800,000
Non-Current Assets
Building, net 1,740,000
Goodwill 140,000
Total Non-Current Assets 1,880,000
Total Assets P 2,680,000
Current Liability
Account Payable P160,000
Shareholder’s Equity
Share Capital 1,000,000
Share Premium 350,000
Retained Earnings 990,000
Owners of Parent 2,340,000
Non-controlling Interest 180,000
Total Equity P2,520,000