CHAPTER 6 (QUIZ 01)

1. D
2. C
3. A

Problem 04
Consideration transferred (5,000*15) 75,000
Non-controlling interest in the acquiree (90K*20%) 18,000
Previously held equity interest in the acquiree
Total 93,000
Fair value of net identifiable assets acquired -90,000
Goodwill at acquisition date 3,000
Accumulated impairment losses since acquisition date -1,000
Goodwill, net - Dec 31, 20x1 2,000

Problem 5
Consideration received (at fair value) 100,000
Investment retained in the former subsidiary (at fair value) 25,000
NCI (carrying amount) 20,000
Total 145,000
Less: XYZ's net identifiable assets at fair value (476k-103k) -100,000
Goodwill -3,000
Gain (loss) on disposal of controlling interest 42,000
XYZ,Inc. Jan. 01,20x1
Net assets at carrying amount 74,000
Fair value adjustments (FVA) 18,000
Net assets at fair value 90,000