# CHAPTER 15 - CHAPTER 15 MULTIPLE CHOICES COMPUTATIONAL 15-1...

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53 CHAPTER 15 MULTIPLE CHOICES - COMPUTATIONAL 15-1: d Price paid P4,000,000 Less fair value of net assets acquired (P6,100 – P2,800) 3,300,000 Goodwill P 700,000 15-2: a, should be P180,000 Price paid P 450,000 Non-controlling interest (P450,000/90%) x 10% 50,000 Total 500,000 Less fair value of net assets acquired (P360,000 – P40,000) 320,000 Goodwill P 180,000 15-3: c Plant assets – Pall Company (at book value) P 220,000 Plant assets – Mall Company (at fair value) 180,000 Consolidated P 400,000 15-4: a Price paid P 495,000 Less fair value of net assets acquired: Cash P 60,000 Inventory 125,000 Property and equipment 385,000 Liabilities ( 70,000) 500,000 Gain on acquisition P ( 5,000) 15-5: a Price paid P350,000 Non-controlling interest (P350,000/80%) x 20% 87,500 Total 437,500 Less fair value of net assets excluding goodwill 330,000 Goodwill P107,500

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54 15-6: a Inventory (P360,000 + P130,000) P490,000 Plant and equipment (P500,000 + P420,000) P920,000 15-7: a Building P180,000 Land P 90,000 15-8: a Price paid P480,000 NCI [(P480,000/80%) x 20%] 120,000 Total 600,000 Less fair value of net assets acquired 450,000 Goodwill P150,000 15-9: d Price paid P160,000 Non-controlling interest (P160,000/80%) x 20% 40,000 Total 200,000 Less fair value of net assets acquired (P300,000 – P160,000) 140,000 Goodwill P 60,000 Therefore: Total assets (P800,000 + P300,000 + P60,000) P1,160,000 Total liabilities (P250,000 + P155,000 + P160,000 + P5,000) 570,000 15-10: b (P900,000 x 1%) 15-11: d Number of shares acquired (P120,000/P120) 1,000 Divided by outstanding shares of Soda (P125,000/P100) 1,250 Controlling interest 80% Non-controlling interest [(P120,000/80%) x 20%} P30,000
55 15-12: a, should be P700,000 Goodwill P250,000 FV of net assets acquired excluding goodwill (P700,000 – P150,000) 550,000 NCI (100,000) Price paid by the Pepsi Company P700,000 15-13: b Price paid (P247,095 + P69,955) P317,050 NCI [(P317,050/85%) x 15%*) 55,950 Total 373,000 Less net assets at fair value excluding goodwill: Net assets at book value P290,700 Inventories 6,630 Plant and equipment 48,450 Patent 7,650 353,430 Goodwill P 19,570 * P43,605/P290,700 = 15% 15-14: d (P500,000 + P300,000) 15-15: c Price paid P260,000 NCI [(P260,000/80%) x 20%] 65,000 Total 325,000 Less fair value of net acquired (P450,000 – P150,000) 300,000 Goodwill P 25,000 15-16: a ( The retained earnings of the parent only). 15-17: b, should be P615,000 Controlling interest (Stockholders’ equity of the parent) P550,000 Non-controlling interest (per no. 15-15) 65,000 Stockholders equity P615,000 15-18: a (refer to 15-15) 15-19: d (P380,000 + P150,000)

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56 15-20: c Cash and cash equivalent (P70,000 + P90,000) P 160,000 Inventory (P100,000 + P60,000) 160,000 Property and equipment (P500,000 + P300,000) 800,000 Goodwill 25,000 Total assets P1,145,000 15-21: a: Fair value per share: New acquisition (P630,000/7,000 shares) P90 Fair value of previously owned shares (1,000* shares x P90) P 90,000 (10%) Acquisition of new shares 630,000 ( 70%) Total price paid for 80% interest P 720,000 Non-controlling interest (P720,000/80%) x 20% P 180,000 * P200,000 / P20 x 10% = 1,000 shares 15-22: c Fair value of previously owned interest (10%) P 90,000 Price paid for new additional interest (70%) 630,000 Non-controlling interest 180,000 Total 900,000 Less fair value of net assets acquired (P910,000 – P130,000) 780,000 Goodwill P120,000 15-23: a The amount reported is equal to Primo’s retained earnings of P567,000 15-24: d 100% – (P163,000/460,000) = 65% 15-25: a (340,000- 200,000) 15-26: b Cash P 40,000 Accounts receivable 20,000 Inventories (see 15-25) 140,000 Equipment (800,000 - 500,000) 300,000 Accounts payable (40,000) Fair value of net assets P460,000 15-27: c Goodwill P 10,000 Fair value of net assets acquired (15-26) 460,000 Total 470,000 NCI (163,000) Price paid by Primo P 307,000
57 15-28: b Parent NCI Total 65% 35% Total implied value P470,000 P307,000 P163,000 Less fair value of net assets 460,000 299,000 161,000 Goodwill P 10,000 P 8,000 P 2,000 15-29: b Non-controlling interest should be valued at the higher amount between the following: At estimated fair value (P512,000/80%) x 20% P128,000

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• Spring '15
• Balance Sheet, NCI, Generally Accepted Accounting Principles, net assets

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