accounting for business combination

Direction: Read the cases below and solve for what is being asked.

1.Nicole Company acquires 75% of Carl John Company (CJC) for P6,000,000. The carrying and fair values of CJC's net assets at the time of acquisition are P4,500,000 and P4,900,000, respectively.

Required:

a.Determine the goodwill or gain on bargain purchase from the above acquisition if the non-controlling interest (NCI) is to be valued on a proportionate basis.

b.Determine the goodwill or gain on bargain purchase from the above acquisition if the NCI is to be valued on a fair value basis.

2.The Statement of Financial Position (SFP) of Arthur Corporation on June 30, 202X is presented below:

Current Assets Land Building Equipment Total Assets liabilities Ordinary Shares, P5 par Share Premium Retained Earnings Total Equities P105,000 'i I320,000 060,000 525,000 P2,?0I0,00I0 P525,000 900 .00 325,000 450,000 P2.?00,00I0