Company Z acquires 80% of Company Y for P 10 million, carrying value of Company Y net assets at the time of acquisition being P 6,000,000 and fair value of these net identifiable assets being P 8,000,000

Determine the following:

1. Goodwill arising on consolidation is to be valued on the proportionate basis

a. P 1,600,000 b. P 2,000,000 c. P 3,600,000d. P 4,500,000

2. Non-controlling interest arising on consolidation is to be valued on the proportionate basis

a. P 1,200,000 b. P 1,600,000 c. P 2,500,000d. P 3,000,000

3. Goodwill arising on consolidation is to be valued on the fair value basis

a. P 1,600,000 b. P 2,000,000 c. P 3,600,000d. P 4,500,000

4. Non-controlling interest arising on consolidation is to be valued on the fair value basis

a. P 1,200,000b. P 1,600,000c. P 2,500,000d. P 3,000,000