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  • Apc 111

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    Eilen Joyce Bisnar
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    NCI represents the portion of a company's equity that is not owned by the parent company. Goodwill is an intangible asset that arises during a business combination. A bargain purchase occurs when the fair value of the net assets acquired exceeds the consideration transferred, resulting in a gain being recognized in equity. The document provides an example of accounting for a business acquisition where the acquirer purchases the net assets of the target company at a price below fair value, resulting in a $50,000 gain.

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    APC 111

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    NCI represents the portion of a company's equity that is not owned by the parent company. Goodwill is an intangible asset that arises during a business combination. A bargain purchase occurs when the fair value of the net assets acquired exceeds the consideration transferred, resulting in a gain being recognized in equity. The document provides an example of accounting for a business acquisition where the acquirer purchases the net assets of the target company at a price below fair value, resulting in a $50,000 gain.

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    59 views19 pages

    Apc 111

    Uploaded by

    Eilen Joyce Bisnar
    NCI represents the portion of a company's equity that is not owned by the parent company. Goodwill is an intangible asset that arises during a business combination. A bargain purchase occurs when the fair value of the net assets acquired exceeds the consideration transferred, resulting in a gain being recognized in equity. The document provides an example of accounting for a business acquisition where the acquirer purchases the net assets of the target company at a price below fair value, resulting in a $50,000 gain.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    of 19

    NCI (Non-controlling Interest) = The remainder of the voting right.

    GOOD WILL- INTANGIBLE ASSET (ASSET)

    BARGAIN PURCHASE- INCOME (EQUITY)


    Summary is at the page 14 of PDF.

    When we account identifiable assets, we should never include good will since it is already recorded in
    the book.
    Level 3
    Placed based on level of priority
    TOTAL NET ASSETS: 500,000-50,000(AP)- 450,000
    GOOD WILL= 50,000
    BIG COMPANIES (ACQUIRER)

    A/R 120,000
    Inv 140,000
    PPE 240,000
    Good will 50,000

    Cash 500,000
    A/P 50,000

    SMALL COMPANIES (ACQUIREE)

    Dr. Cash 500,000


    A/P 50,000
    A/R 120,000
    Inv 140,000
    PPE 280,000
    Gain on Sale 50,000
    To get the gain:
    BV- 450K
    Less: Payment
    Je
    50,000 Gain

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