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How much is the control premium

    Assignment Instructions

    Assignment ID: FG133130271

    Question – Baguio Corp. acquired 80% of outstanding shares of Tagaytay Inc. the stock acquisition resulted to a goodwill of P700,000.

    The consideration transferred by Baguio Corp. and fair value of net assets of Tagaytay Inc. amounted to P4,200,000 and 4,500,000, respectively.

    Required – How much is the control premium? 

    a. 100,000 

    b. 200,000

    c. 1,000,000

    d. None of the above

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