1. Consideration transferred ₱ 1,200,000.

00
Non-controlling interest in the acquiree -
Previously held equity interest in the acquiree -
Total 1,200,000.00
Fair value of net identifiable assets acquired 1,260,000.00
Gain on bargain purchase ₱( 60,000.00)

2. Consideration transferred ₱ 1,200,000.00

Non-controlling interest in the acquiree 260,000.00
Previously held equity interest in the acquiree -
Total 1,460,000.00
Fair value of net identifiable assets acquired 1,300,000.00
Goodwill ₱ 160,000.00

3. Consideration transferred ₱ 1,200,000.00

Non-controlling interest in the acquiree 300,000.00
Previously held equity interest in the acquiree -
Total 1,500,000.00
Fair value of net identifiable assets acquired 1,300,000.00
Goodwill ₱ 200,000.00

4. Consideration transferred ₱ 1,000,000.00

Non-controlling interest in the acquiree -
Previously held equity interest in the acquiree -
Total 1,000,000.00
Fair value of net identifiable assets acquired 900,000.00
Goodwill ₱ 100,000.00

5. Consideration transferred ₱ 1,500,000.00

Non-controlling interest in the acquiree 800,000.00
Previously held equity interest in the acquiree -
Total 2,300,000.00
Fair value of net identifiable assets acquired 2,250,000.00
Goodwill ₱ 50,000.00

6. Deductible temporary difference (DTD) ₱ 400,000.00

Multiply by: Tax rate 30%
Deferred tax asset ₱ 120,000.00

Taxable temporary difference (TTD) ₱ 100,000.00

Multiply by: Tax rate 30%
Deferred tax liability ₱ 30,000.00

Consideration transferred ₱ 1,600,000.00

Non-controlling interest in the acquire -
Previously held equity interest in the acquiree -
Total 1,600,000.00
Fair value of net identifiable assets acquired 1,590,000.00
Goodwill ₱ 10,000.00
1. a. Par value of shares issued ₱ 176,000.00
Divide: Par value per share 20.00
Number of shares issued 8,800.00

b. Consideration transferred ₱ 968,000.00

Non-controlling interest in the acquiree -
Previously held equity interest in the acquiree -
Total 968,000.00
Fair value of net identifiable assets acquired 800,000.00
Goodwill ₱ 168,000.00

c. Identifiable Assets (3,600,000 + 168,000) ₱ 3,768,000.00

Less:
Liabilities 1,300,000.00
Share capital 976,000.00
Share Premium 1,092,000.00
Retained earnings ₱ 400,000.00

2. a. Consideration transferred ₱ 640,000.00

Non-controlling interest in the acquiree 66,500.00
Previously held equity interest in the acquiree 80,000.00
Total 786,500.00
Fair value of net identifiable assets acquired 665,000.00
Goodwill ₱ 121,500.00

b. Journal entries on July 1, 20x1

Investment in subsidiary ₱ 640,000.00
Cash
To record the newly acquired shares

FVPL financial assets 30,000.00

Unrealized gain – P/L
To remeasure the previously held equity interest

Investment in subsidiary 80,000.00

FVPL financial assets
To reclassify the previously held equity interest

3. a. Provisional
Consideration transferred ₱ 1,800,000.00
Non-controlling interest in the acquiree -
Previously held equity interest -
 Total 1,800,000.00
Fair value of net identifiable assets (1,700,000.00)
Goodwill ₱ 100,000.00

b. Adjusting entry on November 31, 20x2

Goodwill 100,000.00
Trademark

4. a. Settlement loss 190,000.00

Carrying amount of related asset or liability recognized -
Adjusted settlement loss 190,000.00

Journal entry on January 1, 20x1

Settlement loss 190,000.00
Cash

b. Consideration transferred ₱ 2,010,000.00

Non-controlling interest in the acquiree -
Previously held equity interest in the acquiree -
Total 2,010,000.00
Fair value of net identifiable assets acquired 1,800,000.00
Goodwill ₱ 210,000.00

5. a. Consideration transferred ₱ 2,280,000.00

Non-controlling interest in the acquiree -
Previously held equity interest in the acquiree -
Total 2,280,000.00
Fair value of net identifiable assets acquired 1,920,000.00
Goodwill ₱ 360,000.00

b. Carrying amount of contingent consideration - 12/31/20x1 ₱ 280,000.00

Fair value – 12/31/20x1 400,000.00
Increase in fair value of liability (loss) ₱( 120,000.00)

Journal entry on December 31, 20x1

Unrealized loss - P/L ₱ 120,000.00
Liability for contingent consideration

Journal entry on January 14, 20x2

Liability for contingent consideration 400,000.00
Cash

c. Journal entry on December 31, 20x1

Liability for contingent consideration 280,000.00
Gain on extinguishment of liability – P/L
₱ 640,000.00

30,000.00

80,000.00

Adjusted
₱ 1,800,000.00
-
-
 1,800,000.00
(1,600,000.00)
₱ 200,000.00

100,000.00

190,000.00

₱ 120,000.00

400,000.00
280,000.00