1.) On April, 2021, Queen Corporation paid P800,000 for the assets a liabilities of Jack Company. The book value of assets and liabilities of Jack Company on April 1, 2021. follow: (20pts) Cash 80,000 Inventory Plant and Equioment (net of accumulated depreciation of P320,000) Liabilities 240,000 480,000 180,000 On April 1, 2021, it was determined that the inventory of Jack had a fair value of 190,000 and the plant and equipment (net) had a fair value of 560,000. Question: Compute for the amount of goodwill resulting from the Business Combination?

1.) On April, 2021, Queen Corporation paid P800,000 for the assets a liabilities of Jack Company. The book value of assets and liabilities of Jack Company on April 1, 2021. follow: (20pts) Cash 80,000 Inventory Plant and Equioment (net of accumulated depreciation of P320,000) Liabilities 240,000 480,000 180,000 On April 1, 2021, it was determined that the inventory of Jack had a fair value of 190,000 and the plant and equipment (net) had a fair value of 560,000. Question: Compute for the amount of goodwill resulting from the Business Combination?

FINANCIAL ACCOUNTING

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ISBN:9781259964947

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Chapter1: Financial Statements And Business Decisions

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Question

1.) On April, 2021, Queen Corporation paid P800,000 for the assets a liabilities of Jack Company.
The book value of assets and liabilities of Jack Company on April 1, 2021. follow: (20pts)
Cash
80,000
Inventory
Plant and Equioment (net of accumulated depreciation of P320,000)
240,000
480,000
180,000
Liabilities
On April 1, 2021, it was determined that the inventory of Jack had a fair value of 190,000 and
the plant and equipment (net) had a fair value of 560,000.
Question: Compute for the amount of goodwill resulting from the Business Combination?
2) On May 31 2021 Dear Company has assets and liabilities with the following fair values:

2.) On May 31, 2021, Dear Company has assets and liabilities with the following fair values:
(20pts)
Current Assets
180,000
Non-current Assets
220,000
40,000
Liabilities
On June 1, 2021, Love Corporation purchases the net assets of Dear Company for 310,000 cash.
Question: The transaction resulted in asset (goodwill) or Income (gain from bargain purchase)?
By what amount?

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