AAA Inc. acquired on January 1, 2016 all the issued and outstanding common shares of BBB Inc. for P320,000 and BBB Inc. is dissolved. On this day, the assets and liabilities of BBB Inc. show: Cash P 30,000 Merchandise inventory 90,000 Plant and equipment 160,000 Goodwill 50,000 Liabilities ( 60,000) Per appraisal, plant and equipment and merchandise inventory were valued at P190,000 and P75,000, respectively. The journal entry in the books of the acquirer would include a debit to Plant and equipment amounting to The amount of goodwill from this transaction is:

AAA Inc. acquired on January 1, 2016 all the issued and outstanding common shares of BBB Inc. for P320,000 and BBB Inc. is dissolved. On this day, the assets and liabilities of BBB Inc. show: Cash P 30,000 Merchandise inventory 90,000 Plant and equipment 160,000 Goodwill 50,000 Liabilities ( 60,000) Per appraisal, plant and equipment and merchandise inventory were valued at P190,000 and P75,000, respectively. The journal entry in the books of the acquirer would include a debit to Plant and equipment amounting to The amount of goodwill from this transaction is:

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Concept explainers

Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.

Question

AAA Inc. acquired on January 1, 2016 all the issued and outstanding common shares of BBB Inc. for
P320,000 and BBB Inc. is dissolved. On this day, the assets and liabilities of BBB Inc. show:
Cash
P 30,000
Merchandise inventory
90,000
Plant and equipment
160,000
Goodwill
50,000
Liabilities
( 60,000)
Per appraisal, plant and equipment and merchandise inventory were valued at P190,000 and P75,000,
respectively.
The journal entry in the books of the acquirer would include a debit to Plant and
equipment amounting to
The amount of goodwill from this transaction is:

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