On January 1, 20×1, AAA Co. acquired 80% of the equity interests of BBB, Inc. in exchange for cash. Because the former owners of BBB

On January 1, 20×1, AAA Co. acquired 80% of the equity interests of BBB, Inc. in exchange for cash. Because the former owners of BBB needed to dispose of their investments in BBB by a specified date, they did not have sufficient time to market BBB to multiple potential buyers. As January 1, 20×1, BBB’s identifiable assets and liabilities have fair values of ₱2,400,000 and ₱800,000, respectively. Case #1: AAA Co. elects the option to measure non-controlling interest at fair value. An independent consultant was engaged who determined that the fair value of the 20% non-controlling interest in BBB, Inc. is ₱310,000. If AAA Co. paid ₱2,000,000 cash as consideration for the 80% interest in BBB, Inc., how much is the goodwill (gain on bargain purchase) on the business combination? Case #2: AAA Co. elects the option to measure non-controlling interest at fair value. An independent consultant was engaged who determined that the fair value of the 20% non-controlling interest in BBB, Inc. is ₱310,000. If AAA Co. paid ₱1,200,000 cash as consideration for the 80% interest in BBB, Inc., how much is the goodwill (gain on bargain purchase) on the business combination? Case #3: AAA Co. elects the option to measure the non-controlling interest at the non-controlling interest’s proportionate share of BBB, Inc.’s net identifiable assets If AAA Co. paid ₱2,000,000 cash as consideration for the 80% interest in BBB, Inc. and, how much is the goodwill (gain on bargain purchase) on the business combination?

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