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Profe03 Act 1
Profe03 Act 1
ACTIVITY CHAPTER 1
1. Solution
Case # 1
Consideration transferred 3 000 000
Non-controlling interest in the acquiree -
Previously held equity interest in the acquiree -
Total 3 000 000
Fair value of net identifiable assets acquired (2 360 000)
Goodwill 640 000
Case #2
Consideration transferred 2 000 000
Non-controlling interest in the acquiree -
Previously held equity interest in the acquiree -
Total 2 000 000
Fair value of net identifiable assets acquired (2 360 000)
Gain on a bargain purchase (360 000)
2. Solution
Case #1
Consideration transferred 2 000 000
Non-controlling interest in the acquiree 310 000
Previously held equity interest in the acquiree -
Total 2 310 000
Fair value of net identifiable assets acquired (160 000)
Goodwill 710 000
Case #2
Consideration transferred 1 200 000
Non-controlling interest in the acquiree 310 000
Previously held equity interest in the acquiree -
Total 1 510 000
Fair value of net identifiable assets acquired (1 600 000)
Gain on a bargain purchase (90 000)
Case #3
Consideration transferred 2 000 000
Non-controlling interest in the acquiree 500 000
Previously held equity interest in the acquiree -
Total 2 500 000
Fair value of net identifiable assets acquired (160 000)
Goodwill 900 000
Case #4
Fair value of identifiable assets acquired 2 400 000
Fair value of liabilities assumed (800 000)
Fair value of net identifiable assets acquired 1 600 000
Multiply by: Non-controlling interest 20%
NCI's proportionate share in net identifiable assets 320 000