Case 3:
Non-Controlling Interest measured at proportionate share in net assets
Inahan Co. elects the option to measure the non-controlling interest at the non-controlling
interest’s proportionate share of Bunso, Inc.’s net identifiable assets. Inahan paid P 1,500,000.00
cash and P 750,000.00 land with fair value of P 1,000,000.00 as consideration for the 75% interest
in Bunso, Inc.
1.How much is the transaction costs incurred during the business combination?
a. 65,000.00
b. 125,000.00
c. 190,000.00
d. 250,000.00
2.How much is the Consideration Transferred by Inahan for its interest in Bunso?
a. 750,000.00
b. 2,250,000.00
c. 2,500,000.00
d. 3,250,000.00
3.How much is the Non-Controlling Interest in the acquiree?
a. 0.00
b. 600,000.00
c. 652,500.00
d. 833,333.33