(Acquisition of partially-owned subsidiary or less than 100% interest- Goodwill) (Case to Case) P Co. acquired 80% of S Co.'s outstanding stock on January 1, 2018, by paying P360,000 cash. P Co. also pays P14,400 in indirect cost to accomplish the purchase. The separate balance sheets of the two entities immediately before the consolidation are presented as follows: P Co. S Co. Book Value Book Value Fair Value Cash 420,000 60,000 60,000 Accounts receivable, net 90,000 60,000 60,000 Inventory 120,000 72,000 90,000 Land 210,000 48,000 120,000 Building and equipment, net 480,000 360,000 348,000 Accounts payable 120,000 120,000 120,000 Bonds payable 240,000 120,000 162,000 Ordinary share, P10 par 600,000 240,000 Share premium 60,000 24,000 Retained earnings 300,000 96,000 CASE 1: Full Goodwill (Fair Value basis) Approach Prepare the journal entry to record the investment in the books of the acquire company. Compute for the goodwill Prepare the schedule for determination and allocation of excess Prepare the working paper elimination entries. Prepare the consolidated working paper on January 1, 2018. Prepare the consolidated balance sheet immediately after acquisition. P'WPP'NE' CASE 2: Partial Goodwill (Proportionate basis) Approach 1. Prepare the journal entry to record the investment in the books of the acquire company. Compute for the goodwill Prepare the schedule for determination and allocation of excess Prepare the working paper elimination entries. Prepare the consolidated working paper on January 1, 2018. Prepare the consolidated balance sheet immediateiy after acquisition. 991:5?!\