air Value of Non-controlling Interest in Subsidiary Given with Control Premium

On July 1, 2020, Parental Inc. acquired most of the outstanding ordinary shares of Guidance Company for cash.The incomplete working paper elimination entries on that date for the consolidated statement of financial position on Parental Inc. and its subsidiary are shown below:

Shareholders' equity-Guidance 2,925,000

Investment in Guidance 1,901,250

Non-controlling Interest 1,023,750

Inventories 75,000

Equipment 375,000

Patent 73,500

Goodwill ?

Investment in Guidance 562,500

Non-controlling interest ?

Included in the purchase price is a control premium of P82,500.

Required:Based on the above eliminating entries and data given:

1.The amount of goodwill to be reported in the consolidated balance sheet on July 1, 2020, assuming non-controlling interest is measured at fair value basis.

2.The amount of goodwill to be reported in the consolidated balance sheet on July 1, 2020 assuming non-controlling interest is measured at the proportionate share.

3.The amount of goodwill to be re[ported in the consolidated balance sheet on July 1, 2020 assuming non-controlling interest is measured at full fair value.The fair value of the non-controlling interest is P1,380,00.