Calculate the gain or loss, Kavya Hotels Ltd. will make on acquisition of Anupama Hotels Ltd., if their deal is finalised. Also show the Journal…

The amount of Anupama Hotels Ltd. identifiable net assets [₹ 400, calculated as 500 *100) exceeds the fair value of the consideration transferred plus the fair value of the non controlling interest in Anupama Hotels Ltd. [384calculated as 300 + 84]. Kavya Hotels Ltd. measures the gain on its purchase of the 80 per cent interest as follows: in lakh Amount of the identifiable net assets acquired (600 -200) 400 Less: Fair value of the consideration transferred for Kavya Hotels Ltd. 80 per cent interest in Anupama Hotels Ltd. 300 Add: air value of non controlling interest in Anupama Hotels Ltd. 84 Gain on bargain purchase of 80 per cent interest 16 Journal Entry in lakhs in lakhs Identifiable assets acquired Dr. 600 To Cash 300 To Liabilities assumed 200 Το OCI/Equity-Gain on the bargain purchase 16 To Equity-non controlling interest in Anupama Hotels Ltd. 84 Alternatively if the acquirer chooses to measure the non-controlling interest in Anupama Hotels Ltd. on the basis of its proportionate interest in the identifiable net assets of the acquiree, the recognized amount of the non-controlling interest would be 80Lakhs (400x 0.20). The gain on the bargain purchase then would be 20lakhs (₹ 400- (₹ 300 +80)