Scenario: P Co increases ownership interest in X Co from 40% to 60%

Required

Determine the amounts of the following items (if any) arising at the date of the most recent transaction in each scenario:
1. New goodwill

2. Effects that are taken to the Income Statement

(a) Remeasurement gain or loss

(b) Profit or loss on sale of investment 3. Equity effects that are not taken to the Income Statement

(a) Profit or loss arising from changes in ownership

(b) Changes in non-controlling interests

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Details Purchase of initial investment of 40% interest in X Co on 1 January 2009 Original cost of previously acquired interests..... P Co's share (40%) of post-acquisition change in equity of X Co for the period from 1 January 2009 to 1 April 2011.. Purchase of additional investment of 20% interest in X Co on 1 April 2011 Fair value of consideration transferred. Fair value of non-controlling interests.. Fair value of previously acquired interests... Fair value of identifiable net assets (deferred tax has not been considered yet) Book value of identifiable net assets.. Tax rate... Ownership interest 40% 20% 40% 40% Amount $5,200,000 900,000 4,100,000 6,500,000 6,500,000 15,000,000 13,000,000 20%