Weavile Company acquires 25% of Rhyperior Company's common stock for P380,000 cash and carries the investment using the cost method. After three months, Weavile purchases another 55% of Rhyperior's common stock for P1,100,000. On this date, Rhyperior reports identifiable assets with carrying value of P1,800,000 and fair value of P2,300,000 and it has liabilities with a book value and a fair value of P700.000. The fair value of the 20% non-controlling interest is P360,000.Goodwill valued on the fair value basis
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Weavile Company acquires 25% of Rhyperior Company's common stock for P380,000 cash and carries the investment using the cost method. After three months, Weavile purchases another 55% of Rhyperior's common stock for P1,100,000. On this date, Rhyperior reports identifiable assets with carrying value of P1,800,000 and fair value of P2,300,000 and it has liabilities with a book value and a fair value of P700.000. The fair value of the 20% non-controlling interest is P360,000.
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- Senpai Company acquires 15% of Kohai Company’s common stock for P600,000 cash and carries the investment using the cost model. A few months later, Senpai purchases another 60% of Kohai Company’s stock for P2,592,000. At that date, Kohai Company reports identifiable assets with a book value of P4,680,000 and a fair value of P6,120,000, and it has liabilities with a book value and fair value of P2,280,000. The fair value of the 25% non-controlling interest in Kohai Company is P1,080,000. Compute the amount of goodwill, using full-goodwill or fair value basis approach: Group of answer choices None of the given P360,000 None P480,000Senpai Company acquires 15% of Kohai Company's common stock for P600,000 cash and carries the investment using the cost model. A few months later, Senpai purchases another 60% of Kohai Company's stock for P2,592,000. At that date, Kohai Company reports identifiable assets with a book value of P4,680,000 and a fair value of P6,120,000, and it has liabilities with a book value and fair value of P2,280,000. The fair value of the 25% non-controlling interest in Kohai Company is P1,080,000. Compute the amount of goodwill, using full-goodwill or fair value basis approach: O P480,000 O P360,000 O None of the given NoneSenpai Company acquires 15% of Kohai Company’s common stock for P600,000 cash and carries the investment using the cost model. A few months later, Senpai purchases another 60% of Kohai Company’s stock for P2,592,000. At that date, Kohai Company reports identifiable assets with a book value of P4,680,000 and a fair value of P6,120,000, and it has liabilities with a book value and fair value of P2,280,000. The fair value of the 25% non-controlling interest in Kohai Company is P1,080,000. Compute the amount of goodwill, using full-goodwill or fair value basis approach: a. 480,000 b. 360,000 c. None of the given d. None
- Senpai Company acquires 15% of Kohai Company’s common stock for P600,000 cash and carries the investment using the cost model. A few months later, Senpai purchases another 60% of Kohai Company’s stock for P2,592,000. At that date, Kohai Company reports identifiable assets with a book value of P4,680,000 and a fair value of P6,120,000, and it has liabilities with a book value and fair value of P2,280,000. The fair value of the 25% non-controlling interest in Kohai Company is P1,080,000. Compute for the amount of goodwill, using partial goodwill or proportionate basis approach: a. None b. 480,000 c. None of the given d. 360,000Senpai Company acquires 15% of Kohai Company’s common stock for P600,000 cash and carries the investment using the cost model. A few months later, Senpai purchases another 60% of Kohai Company’s stock for P2,592,000. At that date, Kohai Company reports identifiable assets with a book value of P4,680,000 and a fair value of P6,120,000, and it has liabilities with a book value and fair value of P2,280,000. The fair value of the 25% non-controlling interest in Kohai Company is P1,080,000. Compute the amount of goodwill, using full-goodwill or fair value basis approach.TRICKY Company acquires 25% of JOKER Corporation’s ordinary shares for P190,000 cash and carries the investment using the cost method. After one quarter, TRICKY Company purchases another 60% of JOKER Corporation’s ordinary shares for P540,000. On this date, JOKER Corporation reports identifiable net assets with carrying value of P720,000 and fair value of P920,000. The liabilities of JOKER Corporation has a book value and fair value of 280,000. The fair value of the 15% controlling interest is P125,000. How much is the goodwill or gain on acquisition?
- PLease show the complete solution. Thank you Mashiho Company acquires 18% of Junkyu Company’s stock for P700,000 cash and carries the investment as a financial asset. A few months later, Mashiho purchases another 70% percent of Junkyu Company’s stock for P2,520,000. At the said date, Junkyu Company reports identifiable assets with a book value of P3,900,000 and a fair value of P5,250,000. Its liabilities have a book and fair values of P1,500,000 and 1,900,000, Required: Determine the amount of goodwill or gain on bargain purchase that should be recognized if the non- controlling interest is measured on a proportionate Determine the amount of goodwill or gain on bargain purchase that should be recognized if the non- controlling interest is measured on a fair valueTRICKY Company acquires 25% of JOKER Corporations ordinary shards for P190,000 cash and carries the investment using the cost method. After one quarter, TRICKY Company purchases another 60% of JOKER Corporation's ordinary shares for P540,000. On this data, JOKER Corporation reports identifiable net assets with carrying value of P720,000 and fair value of P920,000. The liabilities of JOKER Corporation has a book value and fair value of 280,000. The fair value of the 15% controlling interest is P125,000. How much is the goodwill or gain on acquisition? A. P250,000 goodwill B. P17,000 goodwill C. P250,000 gain on acquisition D. P17,000 gain on acquisitionP Company acquires 15% of S Company’s ordinary shares for P500,000 cash and carries the investment using the equity method. A few months later, P purchases another 60% of S's ordinary shares for P2,160,000. At that date, S Company reports identifiable assets with a book value of P3,900,000 and a fair value of P5,100,000, and it has liabilities with a book value and fair value of P1,900,000. WHAT IS THE AMOUNT OF THE: Goodwill arising from the consolidation if it is to be computed using the proportionate basis or “Partial Goodwill” Goodwill arising from the consolidation if it is to be computed using the full (fair value basis of “Full/Gross-up” Goodwill arising from the consolidation if The fair value of the 25% non controlling interest in Subsidiary Company is P890,000.
- As a long-term investment, Painters’ Equipment Company purchased 20% of AMC Supplies Ltd’s 400,000 shares for OMR480,000 at the beginning of the financial year of both companies. On the purchase date, the fair value and the book value of AMC’s net assets were equal. During the year, AMC earned net income of OMR250,000 and distributed cash dividends of OMR0.250 per share. At year-end, the fair value of the shares is OMR505,000. Required: 1.Assume no significant influence was acquired. Prepare the appropriate journal entries from the purchase through the end of the year. (Cost Method) 2.Assume significant influence was acquired. Re-enact the appropriate journal entries from the purchase through the end of the year to report the investment balance in the consolidated financial statements of Painters’ Equipment Company. (Equity Method)2. Mashiho Company acquires 18% of Junkyu Company's stock for P700,000 cash and carries the investment as a financial asset. A few months later, Mashiho purchases another 70% percent of Junkyu Company's stock for P2,520.000. At the said date, Junkyu Company reports identifiable assets with a book value of P3,900.000 and a fair value of P5,250,000. Its liabilities have a book and fair values of P1,500.000 and 1,900,000, respectively. Required: 1. Determine the amount of goodwill or gain on bargain purchase that should be recognized if the non- controlling interest is measured on a proportionate basis. 2. Determine the amount of goodwill or gain on bargain purchase that should be recognized if the non- controlling interest is measured on a fair value basis.P Company acquires 15% of Subsidiary Company’s ordinary shares for P500,000 cash and carries the investment using the equity method. A few months later, P Company purchases another 60% of Subsidiary’s ordinary shares for P2,160,000. At that date, Subsidiary Company reports identifiable assets with a book value of P3,900,000 and a fair value of P5,100,000, and it has liabilities with a book value and fair value of P1,900,000. Determine the GOODWILL arising from the consolidation if it is to be computed using the proportionate basis (or Partial Goodwill).