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In January 1, 2020, Mondstadt Corporation acquired 60% of the outstanding shares of Barbatos Inc for a cash consideration of P900,000. The details of the

In January 1, 2020, Mondstadt Corporation acquired 60% of the outstanding shares of Barbatos Inc for a cash consideration of P900,000. The details of the net assets of Mondstadt and Barbatos at the time of acquisition are as follows: Mondstadt Barbatos Capital Stock P2,500,000 P500,000 Retained Earnings 2,000,000 700,000 6 Additional information follows: The fair value of non-controlling interest of Barbatos is P600,000. The difference of fair value of net assets and its book value at acquisition date is attributed to the following: a. Inventory - overvalued P300,000, 50% was sold during 2020 b. Fixed assets - undervalued P500,000, remaining life: 5 years c. Goodwill - remaining excess amount, impaired by P50,000 as at December 31, 2020 Condensed trial balance as at December 31, 2020: Mondstadt Barbatos Cash 1,500,000 250,000 Accounts Receivables 800,000 300,000 Inventories 1,200,000 400,000 Fixed Assets 4,000,000 1,200,000 Accounts Payable -500,000 -250,000 Capital Stock -2,500,000 -500,000 Retained Earnings -2,000,000 -700,000 Sales -3,500,000 -1,600,000 Cost of Sales 750,000 800,000 Expenses 250,000 100,000 REQUIRED: Determine the following: FULL GOODWILL APPROACH PARTIAL GOODWILL APPROACH Consolidated Inventories Consolidated Fixed Assets

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