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    This document contains solutions to accounting problems involving business combinations and the calculation of goodwill. Problem 3 involves the acquisition of a subsidiary with non-controlling interests. The solutions calculate consideration transferred, non-controlling interest, previously held equity interest, fair value of net assets acquired, and resulting goodwill or gain.

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    This document contains solutions to accounting problems involving business combinations and the calculation of goodwill. Problem 3 involves the acquisition of a subsidiary with non-controlling interests. The solutions calculate consideration transferred, non-controlling interest, previously held equity interest, fair value of net assets acquired, and resulting goodwill or gain.

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    4 views10 pages

    F2

    Uploaded by

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    This document contains solutions to accounting problems involving business combinations and the calculation of goodwill. Problem 3 involves the acquisition of a subsidiary with non-controlling interests. The solutions calculate consideration transferred, non-controlling interest, previously held equity interest, fair value of net assets acquired, and resulting goodwill or gain.

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    © All Rights Reserved
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    of 10

    PROBLEM 3: FOR CLASSROOM DISCUSSION 1. D 2. D 3.

    Solution: Consideration transferred 1,800,000 Non-controlling interes


    1,800,000 Non-controlling interest in the acquiree - Previously held equity interest in the acquiree - Total 1,800,000 Fair value of net iden
    al 1,800,000 Fair value of net identifiable assets acquired (2.37M – 20K goodwill – 700K liabilities) (1,650,000) Goodwill 150,000 4. Solutio
    ,000) Goodwill 150,000 4. Solution: Consideration transferred 2,000,000 NCI [(4M –1.6M) x 25%] 600,000 Previously held equity interest
    00 Previously held equity interest in the acquiree - Total 2,600,000 Fair value of net identifiable assets acquired (4M –1.6M) (2,400,000) G
    cquired (4M –1.6M) (2,400,000) Goodwill 200,000 5. Solution: Consideration transferred 2,000,000 NCI 540,000 Previously held equity int
    540,000 Previously held equity interest in the acquiree - Total 2,540,000 Fair value of net identifiable assets acquired (4M –1.6M) (2,400,0
    sets acquired (4M –1.6M) (2,400,000) Goodwill 140,000 6. Solution: Consideration transferred (18,000 sh. x ₱100) 1,800,000 Non-control
    h. x ₱100) 1,800,000 Non-controlling interest in the acquire - Previously held equity interest in the acquiree - Total 1,800,000 Fair value o
    iree - Total 1,800,000 Fair value of net identifiable assets acquired (3.8M –1.9M) (1,900,000) Gain o

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