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Show your solution. (Stock Acquisition: with control premium) Problem C: On June 1, 2016, Ford Company acquired 80% (800,000 shares) of Honda Corporation for P
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(Stock Acquisition: with control premium) Problem C: On June 1, 2016, Ford Company acquired 80% (800,000 shares) of Honda Corporation for P 8,400,000. A control premium of P 400,000 is included in the consideration paid by Ford. The carrying and fair value of net identifiable assets of Honda amounted to P 8,000,000 and P 9,500,000, respectively. 1. How much is the amount of goodwill under proportionate share basis or partial goodwill? a. P 800,000 c. P1,000,000 b. P 900,000 d. P 2,400,000 2. How much is the amount of goodwill under full fair value basis or full goodwill? a. P 800,000 C. P 900,000 b. P 850,000 d. P 1,000,000 3. Assume that the fair value NCI is assessed at P 1,950,000, how much is the amount of goodwill under gross up value basis? a P 800,000 c. P 900,000 b. P 850,000 d. P 1,000,000Step by Step Solution
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