Chapter 15

Multiple Choice Problems

14. d
FV of SHE of S:
Book value of SHE of S (P100,000 + P180,000)………………..P 280,000
Adjustments to reflect fair value ……………………………… 55,000
FV of SHE of S……………………………………………………… P 335,000
Multiplied by: NCI%.................................................................... 25%
FV of NCI (partial)………………………………………………….P 83,750
Add: NCI on full goodwill (P65,000 – P48,750)……………….. 16,250
FV of NCI (full-goodwill)*…………………………………………P100,000
* same with the NCI given per problem

15. b – P135,000 = P90,000 + P45,000

16. d
Full-goodwill:
Fair value of Subsidiary:
Consideration transferred P160,000
Add: FV of NCI _40,000 P200,000
Less: BV of SHE of Silver (P40,000 + P120,000) x 100% _160,000
Allocated excess P 40,000
Less: Over/under valuation of A and L: Inc. (Dec.)
Inventory (P45,000 – P40,000) x 100% P 5,000 
Land (P60,000 – P40,000) x 100% 20,000 25,000
Goodwill – full P 15,000 

17. a
Total Assets of Gulliver (Jonathan) P610,000 
Less: Investment in Sea-Gull Corp.    (160,000)
P 450,000 
Book value of assets of Sea Corp. 230,000 
Book value reported by Gulliver/Jonathan and Sea P 680,000
Increase in inventory (P45,000 – P40,000) 5,000 
Increase in land (P60,000 – P40,000) 20,000 
Goodwill (full)*     15,000 
Total assets reported P 720,000 

18. c – P100,000 + P95,000 + P30,000 + P40,000 = P265,000