Question
Special Company owns 180,000 out of the 450,000 outstanding shares of Transaction Company. Special Co. account for the investment under the equity method. Transaction Co.
Special Company owns 180,000 out of the 450,000 outstanding shares of Transaction Company. Special Co. account for the investment under the equity method. Transaction Co. subsequently re-acquires 150,000 shares from other investors. Information on the acquisition date is as follows:
a. The previously held 40% interest has fair value of P900,000.
b. Transaction Company assets have a fair value of P5,000,000.
c. Special Co. elects to measure NCI at proportionate.
How much is the goodwill on the transaction?
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Financial Accounting Information For Decisions
Authors: John J. Wild
10th Edition
1260705587, 978-1260705584
