Assume the same facts as in P4.9, except that P Co measures non-controlling interests as a proportion of identifiable net assets. Assume that the ordinary shares and stock options share proportionately in the fair value of identifiable net assets.

Required:
1. Determine the amount of non-controlling interests that has to be recognized by P Co as at acquisition date.
2. Determine the amount of goodwill that has to be recognized by P Co as at acquisition date.

Data from P4.9

P Co acquired control of Sapphire Co on 1 July 20x8 by acquiring 90% of the ordinary shares and stock options of Sapphire Co through paying cash of $200,000,000 to the former owners of Sapphire Co. P Co measures noncontrolling interests at fair value. Tax on fair value of identifiable net assets should be recognized at 20%. The information on identifiable net assets of Sapphire Co is shown below:

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Intangible assets. Other net assets. Total net assets. Fair value per ordinary share.. Fair value per stock option.. Non-controlling interests.. P Co's interests.... Fair value of consideration transferred... Fair value $ 20,000,000 120,000,000 $140,000,000 $2.00 $0.50 10,000,000 shares; 1,000,000 option units 90,000,000 shares; 9,000,000 option units $200,000,000 Book value $ 0 120,000,000 $120,000,000