Theory PROBLEMS

1D 11 B 1.4M
2B 12 B b. Gain on bargain purchase, P40,000
3B 13 B b. P12 million.
4A 14 A A. 61740000
5B 15 D 57,690,000
6D 16 B -40,000
7D 17 A 445,000
8C 18 D 0 (separate FS)
9C 19 D 1,145,000
10 D 20 D 615,000

1 Consideration 11 6 Consideration 300

NCI 6.4 FV net assets 340
Total 17.4 Bargain -40
FV net assets 16
Goodwill 1.4 7 RE before merger 500
Direct and indrect cost -95
2 Consideration 250 Bargain 40
NCI 110 RE after merger 445
Total 360
FV net assets 400 8 Consideration 260
Bargain -40 NCI 65
Total 325
3 Consideration 80 FV net assets 300
Previous interest 15 Goodwill 25
NCI 47
Total 142
FV net assets 130 9P 930
Goodwill 12 S 450
Goodwill 25
4 Anna Investment -260
Consideration 20250 Total assets 1145
FV net assets 14340
Goodwill 5910 10 Total assets 1145
Less: Liab 530
Aira Equity 615
Consideration 10080
FV net assets 12390 CS 300
Bargain -2310 RE 250
NCI 65
Louie 27000 Equity 615
Anna 15600
Aira 13230
Goodwill 5910
Total assets 61740
5 Total assets 61740
Less: Liab 4050
Equity 57690
 Test II
Common stock 100
RE 150
Investment in S Company 200 5
NCI 50

Property and equipment 50

Investment in S Company 40
NCI 10
5
Goodwill 25
Investment in S Company 20
NCI 5 5

Cash 160
Merchandise inventory 160
Property and equipment 800 5
Goodwill 25
670 Total assets 1145

Current liab 240

Long term liab 290
Common stock 300 5
RE 250
NCI 65
Total liab &SHE 1145

25
10
30
65
56