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<\/div><\/div><\/div> 2. On July 1, 2018, St. Louis Company acquired 25% of the outstanding ordinary shares of St. Peter Corporation at a total cost of P ?,000,000. The underlying equity of the shares acquired by St. Louis was only P 6,000,000. St. Louis is willing to pay more than the book value for the following reasons: a. St. Peter owned depreciable plant assets [10-year remaining economic life] with a current fair value of P 600,000 more than their carrying amount. b. St. Peter owned land with current fair value of P 3,000,000 more than its carrying amount. (2. There are no other identiable tangible or intangible asseis with fair value in excess of the book value. Accordingly, the remaining excess, if any, is allocated to goodwill. St. Peter earned net income of P 5,400,000 evenly over the year ended December 31, 2013. On December 31, St. Peter declared and paid a cash dividend of P 1,050,000 to ordinary shareholders. Market value of St. Louis' shares at December 31, 2018 is P 1000.000. Both companies close their accounting records on December 31. Compute: [1) Total amount of goodwill St. Peter Corporation based on the price paid by St. Louis, {2] Net investment income from Investment in St. Peter Corporation, [3] Carrying amount of Investment in St. Peter Corporation as of December 3 1, 2018",
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"related_book": {
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"isbn": "0357512367, 978-0357512364",
"edition": "5th Edition",
"authors": "Mike W. Peng",
"cover_image": "https:\/\/dsd5zvtm8ll6.cloudfront.net\/si.question.images\/book_images\/649592eaa157d_32303.jpg",
"uri": "\/textbooks\/global-strategy-5th-edition-9780357512364",
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"question_posted": "2024-06-28 03:38:59",
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