10/21/21, 10:09 AM BSA PROF 02: PRELIMINARY EXAMINATION

BSA PROF 02: PRELIMINARY

EXAMINATION
jalaine.piodos.salazar@apcas.ph.education Switch account

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LONG PROBLEM : 01

Problem 01: Knoxx

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10/21/21, 10:09 AM BSA PROF 02: PRELIMINARY EXAMINATION

Question: Knoxx elects the option to measure non-controlling interest at 3 points

fair value. An independent consultant was engaged who determined that
the fair value of the 20% non-controlling interest in Luxx, Inc. is ₱620,000.
If Knoxx Co. paid ₱4,000,000 cash as consideration for the 80% interest
in Luxx, Inc., how much is the goodwill (gain on bargain purchase) on the
business combination?

800,000

2,060,000

1,440,000

1,420,000

Clear selection

Question: Knoxx Co. elects the option to measure non-controlling interest 3 points
at fair value. An independent consultant was engaged who determined
that the fair value of the 20% non-controlling interest in Luxx, Inc. is
₱620,000. If Knoxx Co. paid ₱2,400,000 cash as consideration for the
80% interest in Luxx, Inc., how much is the goodwill (gain on bargain
purchase) on the business combination?

(180,000)

(800,000)

160,000

200,000

Clear selection

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10/21/21, 10:09 AM BSA PROF 02: PRELIMINARY EXAMINATION

Question: Knoxx Co. elects the option to measure non-controlling interest 3 points
at fair value. A value of ₱1,000,000 is assigned to the 20% non-controlling
interest in Luxx, Inc. If Knoxx Co. paid ₱4,000,000 cash as consideration
for the 80% interest in Luxx, Inc., how much is the goodwill (gain on
bargain purchase) on the business combination?

200,000

1,800,000

2,440,000

1,440,000

Clear selection

Knoxx Co. elects the option to measure the non-controlling interest at the 3 points
non-controlling interest’s proportionate share of Luxx, Inc.’s net
identifiable assets . If Knoxx Co. paid ₱4,000,000 cash as consideration
for the 80% interest in Luxx, Inc. and, how much is the goodwill (gain on
bargain purchase) on the business combination?

1,440,000

800,000

1,400,000

960,000

Clear selection

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