CASE 1 0.75 0.

25
CI NCI Total
Acquisition Cost 2,508,000 836,000 3,344,000
Book value of net assets 2,280,000 760,000 3,040,000
Excess of cost over book 228,000 76,000 304,000
Over(Under vauation)
20,000 A/R 20,000
(40,000) PA (40,000)
(100,000) B/P 100,000
Net Over 60,000 20,000 80,000
Goodwill 288,000 96,000 384,000

CASE 2 0.80 0.20

FV of CI/NCI/Subs 2,675,200 668,800 3,344,000
Control discount 364,800 (364,800)
Consideration transferred 2,310,400 2,979,200

Acquisition Cost 2,310,400 668,800 2,979,200

Book value of net assets 2,432,000 608,000 3,040,000
Excess of cost over book (121,600) 60,800 (60,800)
Over(Under vauation)
A/R 20,000
PA (40,000)
B/P 100,000
Net over 64,000 16,000 80,000
Goodwill(BPG) (57,600) 76,800 19,200

CASE 3
Investment in associate 150,000
Investment in associate, acqui date 200,000
Gain on reclass 50,000

0.60 0.40
CI NCI Total
Acquisition cost 2,006,400 1,337,600 3,344,000
Book value of net assets 1,824,000 1,216,000 3,040,000
Excess of cost over book 182,400 121,600 304,000
Over(Under vauation)
A/R 20,000
PA (40,000)
B/P 100,000
Net over 48,000 32,000 80,000
Goodwill 230,400 153,600 384,000
CASE 4
0.60 0.40
FV of CI/NCI/Subs 1,620,000 1,080,000 2,700,000
Control premium 324,000 324,000
Consideration transferred 1,944,000 3,024,000

Acquisition cost 1,944,000 1,080,000 3,024,000

Book value of net assets 1,824,000 1,216,000 3,040,000
Excess of cost over book 120,000 (136,000) (16,000)
Over(Under vauation)
A/R 20,000
PA (40,000)
B/P 100,000
net over 48,000 32,000 80,000
Goodwill 168,000 (104,000) 64,000
 PARTIAL GOODWILL FULL GOODWILL
Case Goodwill (Gain) NCI Goodwill (Gain) NCI
2 do not answer do not answer 19,200 668,800
3 230,400 1,184,000 384,000 1,337,600
4 168,000 1,184,000 64,000 1,080,000

Under (Over)
(20,000) 20,000
40,000 (40,000)
100,000 100,000

Over(under)
20,000 20,000
(40,000) (40,000)
(100,000) (100,000)
#NAME?
 0.90 0.10
CI NCI Total
Equity instruments of the acquirer 180,000.00
FV of Peter 10.00
total fv of equity shares 1,800,000.00 200,000.00 2,000,000.00
cash consi 1,831,500.00 203,500.00 2,035,000.00
Estimated liability for contingencies 112,500.00 12,500.00 125,000.00
Acquisition cost 3,744,000.00 416,000.00 4,160,000.00

Acquisition cost 3,744,000.00 416,000.00 4,160,000.00

Book value of net assets 2,635,200.00 292,800.00 2,928,000.00
Excess of cost over net assets 1,108,800.00 123,200.00 1,232,000.00
Over(under)
A/R under 18,240.00
Inventories under 86,400.00
Equipment under 648,000.00
Buildings over - 54,720.00
Long-term debt over 172,800.00
783,648.00 87,072.00 870,720.00
Goodwill 325,152.00 36,128.00 361,280.00

Peter's Books
Investment in subsidiary 3,744,000.00
Cash 1,831,500.00
Ordinary Shares 180,000.00
Share premium 1,620,000.00
Estimated liability for contingencies 112,500.00

ELIMINATING ENTIRES
a. Elimination of subsidiary's SHE
Ordinary shares, P1 per share 80,000.00
Share premium 160,000.00
Accumulated profits 2,728,000.00
Treasury shares, P10 per share 40,000.00
Non-controlling interest 292,800.00
Investment in subsidiaty 2,635,200.00

b. Adjustments to Fair Value

 Accounts receivable 18,240.00
Inventories 86,400.00
Equipment 648,000.00
Long-term debt 172,800.00
Buildings 54,720.00
Investment in subsidiary 783,648.00
Non-controlling interest 87,072.00

c. Recognition of Goodwill (BPG)

Goodwill 361,280.00
Investment in subsidiary 325,152.00
Non-controlling interest 36,128.00
 Pre Book
Peter
Cash 2,400,000.00
Accounts receivable 480,000.00
Allowance for doubtful accounts - 24,000.00
Trading securities 1,200,000.00
Inventories 1,080,000.00
Equipment 3,600,000.00
Accumulated depreciation-equipment - 360,000.00
Land 7,200,000.00
Buildings 2,880,000.00
Accumulated depreciation-buildings - 144,000.00
Copyright 240,000.00
Investment in subsidiary
Goodwill
Total Assets 18,552,000.00

Accounts payable 240,000.00

Accrued liabilities 192,000.00
Estimated liability for contingencies
Long-term debt 2,160,000.00
Ordinary shares, P1 per share 200,000.00
Share premium 400,000.00
Accumulated profits 15,360,000.00
Treasury shares, P10 per share
Non-controlling interest
Total Liabilities and Shareholders' Equity 18,552,000.00
 Post Book
HCC Debit Credit Conso FS
568,500.00 960,000.00 1,528,500.00
480,000.00 192,000.00 18,240.00 690,240.00
- 24,000.00 - 9,600.00 - 33,600.00
1,200,000.00 1,200,000.00
1,080,000.00 432,000.00 86,400.00 1,598,400.00
3,600,000.00 1,440,000.00 648,000.00 5,688,000.00
- 360,000.00 - 144,000.00 - 504,000.00
7,200,000.00 7,200,000.00
2,880,000.00 1,152,000.00 54,720.00 3,977,280.00
- 144,000.00 - 57,600.00 - 201,600.00
240,000.00 240,000.00
3,744,000.00 3,744,000.00 -
361,280.00 361,280.00
20,464,500.00 3,964,800.00 21,744,500.00

240,000.00 96,000.00 336,000.00

192,000.00 76,800.00 268,800.00
112,500.00 112,500.00
2,160,000.00 864,000.00 172,800.00 2,851,200.00
380,000.00 80,000.00 80,000.00 380,000.00
2,020,000.00 160,000.00 160,000.00 2,020,000.00
15,360,000.00 2,728,000.00 2,728,000.00 15,360,000.00
- 40,000.00 40,000.00 -
416,000.00 416,000.00
20,464,500.00 3,964,800.00 21,744,500.00
 CONSOLIDATED SFP Garrison
Pre-book Post-book
Cash 51,200.00 156,260.00 51,200.00
Receivables 61,000.00 61,400.00 61,400.00
Inventories 73,600.00 73,700.00 73,700.00
Property and Equipment 257,700.00 258,000.00 258,000.00
Land 775,400.00 774,000.00 774,000.00
Investment in Subsidiary - - 201,060.00
Goodwill 160,000.00
FV of net assets of subsidiary - 75,700.00 - 75,700.00
Total Assets 1,378,900.00 1,247,660.00 1,343,660.00

Accounts Payable 61,400.00 57,600.00 57,600.00

Notes Payable 124,300.00 115,200.00 115,200.00
Ordinary Shares, P5 par 400,000.00 320,000.00 400,000.00
Share Premium-OS 80,000.00 64,000.00 80,000.00
Retained Earnings (Deficit) 697,260.00 697,260.00 697,260.00
Treasury Shares, P4 per share - 6,400.00 - 6,400.00 - 6,400.00
Noncontrolling Interest 22,340.00 - -
Total Liabilities and SHE 1,378,900.00 1,247,660.00 1,343,660.00
- - -

ELIMINATING ENTRY USING FULL GOODWILL APPROACH

Land 1,400.00
Ordinary Shares, P5 par 100,000.00
Share Premium-OS 20,000.00
Goodwill 160,000.00
Retained Earnings (Deficit) 55,700.00
Receivables 400.00
Inventories 100.00
Property and Equipment 300.00
Investment in Subsidiary 201,060.00
Notes Payable 1,500.00
Noncontrolling Interest 22,340.00

ACQUISITION ANALYSIS
Consideration transferred 0.90 0.10
CI NCI
Cash 105,060.00 11,673.33
Equity instrument of Garrison 16,000.00 96,000.00 10,666.67
FV of CU/NCI/Subs 201,060.00 22,340.00
Acquisition cost/FV of NCI/FV of subs 201,060.00 22,340.00
Book value of net assets acquired 57,870.00 6,430.00
Excess of cost over book value 143,190.00 15,910.00
Land
Receivables
Inventories
Property and Equipment
Notes Payable
Net under - 810.00 - 90.00
Goodwill 144,000.00 16,000.00

ACQUIRER'S BOOKS-GARRISON
Investment in Subsidiary 201,060.00
Cash 105,060.00
Ordinary Shares 80,000.00
Share Premium 16,000.00

ELIMINATE THE SUBSIDIARY'S SHE

Ordinary Shares, P5 par 100,000.00
Share Premium 20,000.00
Retained earnings 55,700.00
Investment in subsidiary 57,870.00
Noncontrolling interest 6,430.00

ADJUSTMENT TO FAIR VALUE

Land 1,400.00
investment in subsidiary 810.00
non controlling interest 90.00
Receivables 400.00
Inventory 100.00
PPE 300.00
Notes Payable 1,500.00

RECOGNITION OF GOODWILL(FULL)
Goodwill 160,000.00
Investment in subsidiary 144,000.00
Noncontrolling interest 16,000.00

RECOGNITION OF GOODWILL(PARTIAL)
Goodwill 144,000.00
Investment in subsidiary 144,000.00
 Morrison
Book

75,700.00

3,800.00
7,600.00
100,000.00
20,000.00
- 55,700.00
-

75,700.00
-

Total
116,733.33
106,666.67
223,400.00
 223,400.00
64,300.00 EE1
159,100.00
- 1,400.00 under
400.00 over
100.00 over
300.00 over
1,500.00 under
- 900.00 EE2
160,000.00 EE3
1,247,660 Garrison's total assets in its separate financial statement prior to business combination
1,343,660 Garrison's total assets in its separate financial statement immediately after business cobination
172,800 Garrison's total liabilities in its separate financial statement prior to business combination
1,074,860 Garrison's total shareholders' equity in its separate financial statement prior to business combination
1,170,860 Garrison's total shareholders' equity in its separate financila statement immediately after business combinati
18,000 Number of Morrison ordinary shares acquired by Garrison
144,000 Assume that Garrison used proportionate share approach, compute the goodwill
ss cobination

iness combination
y after business combination
CASE 1 0.90 0.10
CI NCI Total
FV of CI/NCI/Subs 1,440,000.00 160,000.00 1,600,000.00
Control Premium 32,000.00 32,000.00
Acquisition Cost 1,472,000.00 1,632,000.00

Acquisition cost 1,472,000.00 160,000.00 1,632,000.00

book value of net assets 604,800.00 67,200.00 672,000.00
Excess of cost over book 867,200.00 92,800.00 960,000.00
Net under 604,800.00 67,200.00 672,000.00
Goodwill 262,400.00 25,600.00 288,000.00

CASE 2 0.75 0.25

CI NCI Total
FV of CI/NCI/Subs 3,086,400.00 1,028,800.00 4,115,200.00
Control Premium 19,200.00 19,200.00
Acquisition Cost 3,105,600.00 4,134,400.00

Acquisition cost 3,105,600.00 1,028,800.00 4,134,400.00

book value of net assets 1,243,200.00 414,400.00 1,657,600.00
Excess of cost over book 1,862,400.00 614,400.00 2,476,800.00
Net under 1,304,640.00 434,880.00 1,739,520.00
Goodwill 552,960.00 184,320.00 737,280.00
557,760.00 179,520.00 737,280.00
 Case 1 Case 2
NCI (Full) 160,000 1,024,000
NCI (Partial) 134,400 844,480
CI in the net assets of sub 1,472,000 3,091,200
Control Premium 32,000 19,200
Allocated excess 960,000 2,457,600
FV of Acquiree's net assets 1,344,000 3,377,920
Goodwill (full) 288,000 737,280
Goodwill (partial) 262,400 557,760
Book Value of acquiree's net assets 672,000 1,657,600
FV of subsidiary 1,600,000 4,096,000
acquirer's percentage of ownership 90% 75%

1.00 1,024,000.00
2.00 134,400.00
3.00 3,091,200.00
4.00 2,457,600.00
5.00 1,344,000.00
6.00 3,377,920.00
7.00 557,760.00
8.00 672,000.00
9.00 4,096,000.00
10.00 90%