8. Kopi Company acquired all of the outstanding ordinary shares of an acquiree paying P9,000,000 cash. The carrying amount and fair value of the assets and liabilities of the acquiree were: Carrying amount Fair Value Accounts receivable P 1,500,000 Inventory 4,800,000 Land 7,500,000 Property and Equipment 2,500,000 Accounts payable 2,500,000 Bonds Payable 1,900,000 P 1,200,000 3,000,000 5,000,000 2,000,000 2,500,000 1,500,000 What amount should be recognized as goodwill or negative goodwill? a. P 1,900,000 b. P-1,900,000 c. P 2,900,000 d. -2,900,000
8. Kopi Company acquired all of the outstanding ordinary shares of an acquiree paying P9,000,000 cash. The carrying amount and fair value of the assets and liabilities of the acquiree were: Carrying amount Fair Value Accounts receivable P 1,500,000 Inventory 4,800,000 Land 7,500,000 Property and Equipment 2,500,000 Accounts payable 2,500,000 Bonds Payable 1,900,000 P 1,200,000 3,000,000 5,000,000 2,000,000 2,500,000 1,500,000 What amount should be recognized as goodwill or negative goodwill? a. P 1,900,000 b. P-1,900,000 c. P 2,900,000 d. -2,900,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![8. Kopi Company acquired all of the outstanding ordinary shares of an
acquiree paying P9,000,000 cash. The carrying amount and fair
value of the assets and liabilities of the acquiree were:
Carrying amount
Fair Value
Accounts receivable
P 1,500,000
Inventory
4,800,000
Land
7,500,000
Property and Equipment
2,500,000
Accounts payable
2,500,000
Bonds Payable
1,900,000
P 1,200,000
3,000,000
5,000,000
2,000,000
2,500,000
1,500,000
What amount should be recognized as goodwill or negative
goodwill?
a. P 1,900,000
b. P-1,900,000
c. P 2,900,000
d. P-2,900,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5a76d9d8-471f-4f26-931e-5ded66d518d4%2Fd07889d3-291e-4be1-896d-66f987ef6430%2Fs3kvpw_processed.jpeg&w=3840&q=75)
Transcribed Image Text:8. Kopi Company acquired all of the outstanding ordinary shares of an
acquiree paying P9,000,000 cash. The carrying amount and fair
value of the assets and liabilities of the acquiree were:
Carrying amount
Fair Value
Accounts receivable
P 1,500,000
Inventory
4,800,000
Land
7,500,000
Property and Equipment
2,500,000
Accounts payable
2,500,000
Bonds Payable
1,900,000
P 1,200,000
3,000,000
5,000,000
2,000,000
2,500,000
1,500,000
What amount should be recognized as goodwill or negative
goodwill?
a. P 1,900,000
b. P-1,900,000
c. P 2,900,000
d. P-2,900,000
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