Advance financial accounting

PROB. 5 -32 (Financial Accounting by Deegan) On July 1, 2016, Double Co. acquired 80% of the share capital of Solo Co, for P800,000, which represented the fair value of the consideration paid, when the share capital and reserves of Solo Co. were: Issued capital P 600,000 Revaluation surplus 200,000 Retained earnings 200,000 Owner's equity P 1,000,000 All assets of Solo Co. were recorded at fair value at acquisition date, except for equipment that had a fair value of P40,000 greater than its carrying amount. This gives rise to the recognition of deferred tax liability. The cost of the equipment was P80,000 and it had accumulated depreciation of P20,000. The tax rate is 30% Using the partial goodwill method, what is the amount of fair value adjustment and goodwill, respectively, only July 1, 2016 for non-controlling interests in Solo Co.? a. 5,600 Zero b. 22,400 44,400 c. 5,600 44,400 (1. 22,400 177,600