a.

) Percent of ownership
1,000,000/100 = 10,000 shares
acquired/available shares
10,000 / 10,000 = 100%
b.) Investment entry
Investment in sshares of V
Cash

1,500,000
1,500,000

c.) Table for determination and allocation of excess

Consideration Paid
1,500,000
SHE (Viewpoint)
1,550,000
Excess
-50,000
d.) Adjustment and elimination entries
Share Capital
Share Premium
Retained Earnings
Investment in Viewpoint
Gain from bargain purchase

1,000,000
250,000
300,000
1,500,000
50,000

a.) Percent of ownership

1,200,000/100 = 12,000 shares
acquired/available shares
9,000 / 12,000 = 75%
b.) Investment entry
Investment in stocks of V
Cash

1,200,000
1,200,000

c.) Table for determination and allocation of excess

Full Goodwill
100%
75%
Total Value
Controlling interest
Consideration
1,600,000
1,200,000
Subsidiary interest
1,425,000
1,068,750
Excess - goodwill
175,000
131,250
Partial Goodwill
Consideration
Subsidiary interest
Excess - goodwill

100%
Total Value
1,556,250
1,425,000
131,250

d.) Adjustment and elimination entries

Share Capital-V
Share Premium-V
Goodwill
Retained Earnings
Investment in stocks
Shares of NCI in GW
Share Capital-V
Share Premium-V
Shares of NCI in GW
RE
NCI

75%
Controlling interest
1,200,000
1,068,750
131,250

25%
Non-controlling interest
400,000
356,250
43750
25%
Non-controlling interest
356,250
356,250
0

900,000
243,750
175,000
75,000
1,200,000
43750
300,000
81,250
43,750
25,000
400,000

a.) Percent of ownership

1,000,000/100 = 10,000 shares
acquired/available shares
7500 / 10,000 = 75%
b.) Investment entry
Investment in stocks of V
Cash

900,000
900,000

c.) Table for determination and allocation of excess

100%
75%
Total Value
Controlling interest
Consideration
1,230,000
900,000
Subsidiary interest
1,320,000
990,000
Excess - gain
(90,000)
(90,000)
d.) Adjustment and elimination entries
Share Capital-V
Share Premium-V
RE
Investment in stocks
Gain from bargain purchase
Share Capital-V
Share Premium-V
RE
NCI

25%
NCI
330,000
330,000
-

750,000
150,000
90,000
900,000
90,000
250,000
50,000
30,000
330,000