If you give me wrong answer this accounting question I will give you unhelpful rate ABC buys a smaller company XYZ for a negotiated priceof 1 million. XYZ's assets are valued at 750,000 pounds.Assuming goodwill is amortized over 5 years, what isthe value of goodwill in ABC's Statement of FinancialPosition at the end of the third year after acquisition?

Step 1: Define Intangible AssetsThe intangible assets are those assets that do not have any physical…

Answered: ABC buys a smaller company XYZ for a…

Principles of Accounting Volume 1

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Chapter11: Long-term Assets

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Problem 10PA: Buchanan Imports purchased McLaren Corporation for $5,000,000 cash when McLaren had net assets worth...

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On January 1, 2020, Azure Corporation purchased Sparrow Corporation for $20 million. Of the $20 million purchase price, $2 million was allocated to goodwill. What is Azure’s amortization deduction related to the goodwill for 2020? Round your answer to the nearest whole dollar.
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On January 1, 2024, Jackson purchased ABC Company for $900,000. At the time, ABC Company had assets with a market value of $320,000 and liabilities with a market value of $100,000. What is the amount of goodwill Jackson should report on January 1, 2024? O $220,000 $480.000 $680,000 O $420,000
An entity is planning to sell the business to new interests. The cumulative net earnings for the past five years amounted to P16,500,000 including expropriation loss of P1,500,000. The normal rate of return is 20%. The fair value of net assets of the entity at current year end was P10,000,000. 1. What is the purchase price if goodwill is measured by capitalizing excess earnings at 25%?2. What is the purchase price if goodwill is measured by capitalizing average annual earnings at 25%?
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On October 01,2019, the Tomoe Co. acquired 100% of the Nanami Co. when the fair value of Nanami's net assets as Php116M and their carrying amount was Php120M. The consideration transferred comprised Php200M in cash transferred at the acquisition date, plus another Php60M in cash to be transferred 11 months after the acquisition date if a specified profit target was met by Nanami. At the acquisition date, there was only a low probability of the profit target being met, so the fair value of the additional consideration liability was Php10M. In the event, the profit target was met and the Php60M cash was transferred. Provide the Journal Entries for the business combination until the measurement period
On January 1, 2020, Shell Corporation acquired the net assets of Petron Inc. The acquirertransferred cash amounting to P3,000,000 and obligates itself to pay additional P1,500,000 afterone year if the market price of Shell Corporation increased by 50%. The businesscombination resulted to a goodwill of P300,000.At the date of acquisition, it is estimated that there is a 70% probability that the condition will bemet.On March 1, 2020, The operations of Shell Corporation was halted due to COVID 19 –pandemic lockdown and restrictions, this resulted to a 30% decrease in probability estimation ofthe contingent consideration. 1. What is the value of contingent consideration on March 1, 2020?a. 1,500,000b. 1,050,000c. 450,000d. 600,000 2. What is the effect of the March 1, 2020 information to the recognized goodwill?a. Goodwill decreased by P450,000.b. Gain on bargain purchase will be recognized in the amount of P150,000.c. Gain on bargain purchase will be recognized in the amount of…
On January 1, 2022 the Aquila Co. acquired 100% of the Taurus Co. when the fair value of Taurus net assets was P4,000,000 and their carrying amount was P3,500,000. The consideration transferred consisted of P4,400,000 in cash transferred at the acquisition date, plus another P200,000 in cash to be transferred 10 months after (November 1, 2022) the acquisition date if a specified profit target was met by Taurus.At the acquisition date, there was only a low probability, around 40% of the profit target is being met.On November 1, 2022, additional P200,000 was paid by Aquila to Taurus after the latter met the specified profit target.How much is the goodwill to be reported on December 31, 2022? a. P480,000 b. P600,000 c. P980,000 d. P400,000
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Blue sky company’s balance sheet dated 12/31/2020 reports 6 million And assets in 2.4 million in liabilities book values for all the firms assets, approximate their fair values except for land which has the book value that is 360,000 lower than it’s fair value on December 31 Horatio corporation pay 6.12 million to acquire blue sky as a result of the purchase, Horacio should record a Goodwill amount of. please give me answer fast

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ABC buys a smaller company XYZ for a negotiated price of 1 million. XYZ's assets are valued at 750,000 pounds. Assuming goodwill is amortized over 5 years, what is the value of goodwill in ABC's Statement of Financial Position at the end of the third year after acquisition?