Case 2: Non-Controlling Interest measured at fair value Inahan Co. elects the option to measure the non-controlling interest at fair value. However, no independent consultant were engaged. Inahan paid P 1,500,000.00 cash and P 750,000.00 land with fair value of P 1,000,000.00 as consideration for the 75% interest in Bunso, Inc 1.How much is the previously held equity interest in the acquiree? a. 0.00 b. 600,000.00 c. 652,500.00 d. 833,333.33 2.How much is the fair value of the net identifiable assets acquired? a. 4,560,000.00 b. 2,610,000.00 c. 3,110,000.00 d. 2,810,000.00 3.How much is the goodwill (gain on bargain purchase) on the business combination? a. 490,000.00 b. 542,500.00 c. 723,333.33 d. 750,000.00
Case 2: Non-Controlling Interest measured at fair value Inahan Co. elects the option to measure the non-controlling interest at fair value. However, no independent consultant were engaged. Inahan paid P 1,500,000.00 cash and P 750,000.00 land with fair value of P 1,000,000.00 as consideration for the 75% interest in Bunso, Inc 1.How much is the previously held equity interest in the acquiree? a. 0.00 b. 600,000.00 c. 652,500.00 d. 833,333.33 2.How much is the fair value of the net identifiable assets acquired? a. 4,560,000.00 b. 2,610,000.00 c. 3,110,000.00 d. 2,810,000.00 3.How much is the goodwill (gain on bargain purchase) on the business combination? a. 490,000.00 b. 542,500.00 c. 723,333.33 d. 750,000.00
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Case 2: Non-Controlling Interest measured at fair value
Inahan Co. elects the option to measure the non-controlling interest at fair value. However,
no independent consultant were engaged. Inahan paid P 1,500,000.00 cash and P 750,000.00
land with fair value of P 1,000,000.00 as consideration for the 75% interest in Bunso, Inc
1.How much is the previously held equity interest in the acquiree?
a. 0.00
b. 600,000.00
c. 652,500.00
d. 833,333.33
2.How much is the fair value of the net identifiable assets acquired?
a. 4,560,000.00
b. 2,610,000.00
c. 3,110,000.00
d. 2,810,000.00
3.How much is the
combination?
a. 490,000.00
b. 542,500.00
c. 723,333.33
d. 750,000.00
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