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PP Corporation
PP Corporation
PP Corporation
26. On the date of acquisition, what is the goodwill (gain on acquisition) to be reported on the
a. P(30,000)
b. P 30,000
c. P(24,000)
d. P24,000
Parent NCI
a. P(24,000) P(6,000
)
b. P24,000 P6,000
c. P(24,000) -
d. P30,000 -
Use the following information in answering questions Nos. 28 and 29
existing stockholders for P315,000. This purchase increased PP's interest to 80%. SS Company
had the following statement of financial position just prior to PP's second purchase:
par
Equipment (net) 100,000 Retained earnings
240,000
Total assets P405,000 Total Liabilities and P405,000
equity
On the date of the second purchase, PP determines that the equipment of SS was understated
by P50,000 and had a 5-year remaining life. All other book values approximate fair values. Any
28. What is the implied fair value of NCI to be reported on January 1, 2013?
a. P90,000
b. P42,000
c. P88, 750
d. P83,500