1-14. On July 1, 2012, GSJ issued 50,000 shares of its 2 par share capital with current fair value of P 5.00 per share and paid cash with total amount of P 20,000 for 4,000 shares outstanding with P 3 par share capital of SANJO. SANJO will still remain a separate corporation. Out of pocket cost of the business combination paid in cash by GSJ on July 1 are as follows: Finders fee: P 1,000, Cost associated with registration of GSJs issued stocks amounting to P 3,000 and accountants fee of P 2,000. The financial statements before the acquisition as of June 30, 2012 are as follows:

SANJOs assets have a current fair value as follows:

Account	Fair Value
Current assets	P 120,000
Plant assets-net	250,000

The parent company elected to measure non controlling interest at its proportionate share on the identifiable net assets. July 1 is the companys year end closing period.

Questions:

1.________________. What is the amount of goodwill?

2_________________. On the consolidated FS, what is the total amount of current assets?

3.________________. On the consolidated FS, what is the total amount of non-current assets?

4.________________. On the acquisition date, the entry for the issuance of shares and payment of cash by the Parent will include a debit to Investment in Subsidiary account by what amount?

5._________________. On the separate books / FS of GSJ, as a result of the business combination, the company will debit / increase current assets by what amount?

6. _________________. On the consolidated FS, compute the total capital / equity?

7._________________. After acquisition, on the separate FS of GSJ, APIC will be?

8._________________. On the consolidated FS, what is the balance of Investment in Subsidiary account?

9._________________. On the consolidated FS, what is the balance of Non-controlling interest?

10.________________. On the consolidated FS, what is the balance of Retained earning?

11.________________. On the separate books / FS of the acquirer, the balance of retained earnings after acquisition is?

12.________________. If the consideration paid / transferred was P 150,000 cash only, what will be the goodwill (negative goodwill)?

13.________________. Based on number 12, what will be the Stockholder equity balance on he consolidated FS?

14.________________. Based on number 12 and 13, Non controlling interest should be?

15._________________. Based on problem 1, if there is a contingent consideration involved in the acquisition agreement and the fair value of that contingent consideration is P 5,000, what will be the computed goodwill?