Chapter 15

Multiple Choice Problems

29. a
Non-controlling interest (partial-goodwill): P52,500
NCI
FV of SHE of SSD:
Book value of SHE of SS (P50,000 + P90,000)…………….P 140,000
Adjustments to reflect fair value (P15,000 + P20,000)… 35,000
FV of SHE of SSD P 175,000
Multiplied by: NCI%.......................................................... 30%
FV of NCI (partial)……………………………………………..P 52,500
30. d
Non-controlling interest (fulll-goodwill): P64,500
NCI
FV of SHE of SSD:
Book value of SHE of SS (P50,000 + P90,000)…………….P 140,000
Adjustments to reflect fair value (P15,000 + P20,000)… 35,000
FV of SHE of SSD P 175,000
Multiplied by: NCI%.......................................................... 30%
FV of NCI (partial)……………………………………………..P 52,500
Add: NCI on full-goodwill (P40,000 – P12,000)…………... 12,000
FV of NCI (full)…………………………………………………..P 64,500

31. d P205,000 = The amount reported by Power Corporation

32. c P419,500 = (P150,000 + P205,000) + P64,500

If partial-goodwill:
Stockholders’ equity: P419,500
Consolidated SHE:
Common stock P150,000
Retained Earnings 205,000
Parent’s SHE or Equity Attributable to Parent P355,000
NCI (partial-goodwill) 52,500
Consolidated SHE P404,500
33. b
Consideration transferred ...................................................................................................... P60,000
Less: Strand's book value (P50,000 x 80%).......................................................................... (40,000)
Fair value in excess of book value ........................................................................................ P20,000
Excess assigned to inventory (60%) ........................................................................P12,000
Excess assigned to goodwill (40%) ..........................................................................P 8,000
34. c
Consideration transferred (P60,000 ÷ 80%).......................................................................... P75,000
Less: Strand's book value ...................................................................................................... (50,000
Fair value in excess of book value ........................................................................................ P25,000
Excess assigned to inventory (60%) ........................................................................P15,000
Excess assigned to goodwill (40%) ..........................................................................P10,000
35. a
Park current assets.................................................................................................................... P 70,000
Strand current assets................................................................................................................. 20,000
Excess inventory fair value...................................................................................................... 15,000
Consolidated current assets...................................................................................................... P105,000