On January 7, 2017, Rey Co. acquired a 40% interest in Joanne Co. for P4,800,000. Rey already held a 25% interest which had been acquired for P1,600,000 but which was valued at P1,920,000 at January 7, 2017. The fair value of non-controlling interest (NCI) at January 7, 2015 was P2,400,000, and the fair value of the identifiable net assets of Joanne Co. was P8,400,000. How much is the goodwill to be recognized as a result of business combination?

On January 7, 2017, Rey Co. acquired a 40% interest in Joanne Co. for P4,800,000. Rey already held a 25% interest which had been acquired for P1,600,000 but which was valued at P1,920,000 at January 7, 2017. The fair value of non-controlling interest (NCI) at January 7, 2015 was P2,400,000, and the fair value of the identifiable net assets of Joanne Co. was P8,400,000. How much is the goodwill to be recognized as a result of business combination?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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