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q10 Accounting Combination On January 2, 20x1, Paul Corp. acquired 20% ownership interest in Simon Corp. for P1,350,000 and the carries the investment using the
q10 Accounting Combination
On January 2, 20x1, Paul Corp. acquired 20% ownership interest in Simon Corp. for P1,350,000 and the carries the investment using the cost model. On December 31, 20x1, Simon Corp. declared and paid dividends amounting to P500,000 and the net income was P2,000,000. On January 10, 20x2, Paul Corp. acquired another 50% ownership interest in Simon Corp for P3,000,000. At that date, Simon Corp. has identifiable assets with book value of P6,000,000 and fair value of P7,200,000 and it has liabilities with book and fair value of P1,500,000 Assuming Paul Corp. measures the NC at fair value amounting to P2,250,000, what is the amount of goodwill
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