Question
On January 1, 2021, Parent Company purchased 80% of Subsidiary Companys stock for P980,000. On this date, the carrying amount of Subsidiary Companys net assets
On January 1, 2021, Parent Company purchased 80% of Subsidiary Companys stock for P980,000. On this date, the carrying amount of Subsidiary Companys net assets were P1,000,000. The fair value of Subsidiary Companys identifiable assets and liabilities were the same as their carrying amount except for plant assets (net) which were P100,000 in excess of the carrying amount. For the year ended, Subsidiary Company had a net income of P190,000 and paid cash dividends totaling P125,000. Parent opted to measure NCI proportionate to its share on subsidiarys identifiable net assets. In the January 1, 2021 consolidated balance sheet, goodwill should be reported at:
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