Question
On July 1, 2017, Igloo Co. acquired all of the ordinary shares in Super Co. At that date, the shareholder's equity of Super was as
On July 1, 2017, Igloo Co. acquired all of the ordinary shares in Super Co. At that date,
the shareholder's equity of Super was as follows:
Issued capital (10,000,000 shares)................................... 10,000,000
Retained profits.........................................................
8,000,000
Total.......................................................................
18,000,000
Igloo Co. used its control to have Super Co. revalue its assets to fair value in its
financial statements, resulting in a revaluation increment of P2,000,000. This
revaluation led to the recognition of a deferred tax liability of P600,000. The amount of
goodwill included in the consolidated statement of financial position was P1,000,000.
what was the consideration paid by igloo for the shares in super co.?
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