Case 3: Non-Controlling Interest measured at proportionate share in net assets Inahan Co. elects the option to measure the non-controlling interest at the non-controlling interest’s proportionate share of Bunso, Inc.’s net identifiable assets. 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 transaction costs incurred during the business combination? a. 65,000.00 b. 125,000.00 c. 190,000.00 d. 250,000.00 2.How much is the Consideration Transferred by Inahan for its interest in Bunso? a. 750,000.00 b. 2,250,000.00 c. 2,500,000.00 d. 3,250,000.00 3.How much is the Non-Controlling Interest in the acquiree? a. 0.00 b. 600,000.00 c. 652,500.00 d. 833,333.33

Case 3: Non-Controlling Interest measured at proportionate share in net assets Inahan Co. elects the option to measure the non-controlling interest at the non-controlling interest’s proportionate share of Bunso, Inc.’s net identifiable assets. 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 transaction costs incurred during the business combination? a. 65,000.00 b. 125,000.00 c. 190,000.00 d. 250,000.00 2.How much is the Consideration Transferred by Inahan for its interest in Bunso? a. 750,000.00 b. 2,250,000.00 c. 2,500,000.00 d. 3,250,000.00 3.How much is the Non-Controlling Interest in the acquiree? a. 0.00 b. 600,000.00 c. 652,500.00 d. 833,333.33

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter20: Corporations: Distributions In Complete Liquidation And An Overview Of Reorganizations

Section: Chapter Questions

Problem 33P

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Case 2: Non-Controlling Interest measured at fair valueInahan 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. 0.00b. 600,000.00c. 652,500.00d. 833,333.33 2.How much is the fair value of the net identifiable assets acquired?a. 4,560,000.00b. 2,610,000.00c. 3,110,000.00d. 2,810,000.00 3.How much is the goodwill (gain on bargain purchase) on the business combination? a. 490,000.00b. 542,500.00c. 723,333.33d. 750,000.00
Case 2: Non-Controlling Interest measured at fair valueInahan 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 transaction costs incurred during the business combination?a. 65,000.00b. 125,000.00c. 190,000.00d. 250,000.00 2.How much is the Consideration Transferred by Inahan for its interest in Bunso?a. 750,000.00b. 2,250,000.00c. 2,500,000.00d. 3,250,000.00 3.How much is the Non-Controlling Interest in the acquiree?a. 0.00b. 600,000.00c. 652,500.00d. 833,333.33
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