Business Combination

Please answer letter a and b

3. Father Corporation (FC) acquires 20% ownership interest in Son Corporation (SC) on January 1, 202X, for P1,750,000 cash, which is the fair value of the investment at that date. FC has concluded that it does not have a significant influence over SC. At the same date, the fair and carrying values of SC's identifiable assets is P5,000,000 and P3,000,000. The identifiable assets include land, which has fair and carrying values of P4,000,000 and P3,000,000, respectively. For the year ended December 31, 202X, SC reported a profit of P3,000,000 but did not pay any dividends. Moreover, the fair value of SC's land increases by P1,500,000. However, the carrying amount of the land remains unchanged at P3,000,000. Given below is the Statement of Financial Position (SFP) of SC, together with the fair values of the identifiable assets, at December 31, 202X: Carrying Amount Fair Value Cash and Receivables 4,000,000 4,000,000 Land 3,000,000 5,500,000 Ordinary Shares 2,500,000 Retained Earnings 4,500,000 On January 1, 202Y, FC acquired another 60% ownership interest in SC for P11,000,000 cash. FC's initial investment was measured at its fair value of P3,500,000. However, SC's 1,000,000 ordinary shares have a quoted price of P15 per share on December 31, 202X. Therefore, the carrying amount of FC's initial investment was remeasured to P3,000,000 on December 31, 202X. The P1,250,000 increase was recognized as a component of other comprehensive income. FC's SFP on December 31, 202X before the acquisition of the 60% interest was as follows: Carrying Amount Cash 4,000,000 Investment in SC 3,000,000 Ordinary Shares 2,500,000 Unrealized Gain on Equity Investment - FVTOCI 4,500,000 Required: a. Determine the goodwill or gain on bargain purchase from the above acquisition if the NCI is to be valued on a proportionate basis. b. Determine the balance of the NCI in FC's consolidated financial statements