Entity A acquired 80,000 out of 100,000 outstanding ordinary shares of Entity B which enables

the former to obtain control of the latter at an acquisition price of P1,000,000. Entity A paid

P100,000 acquisition related costs and P50,000 indirect costs of business combination.

At the date of acquisition, the net assets of Entity B are reported at P1,600,000. An asset of

Entity B is overvalued by P60,000 while one of its liability is undervalued by P40,000.

Question: #1

What is the initial measurement of noncontrolling interest in net assets in the

Consolidated statement of financial position?

Question#2

What is the goodwill or (gain on bargain purchase) arising from business combination?