ABC Corporation purchased XYZ Inc. The latter has the following account balances:   The noncurrent assets have a fair value of P4,500,000. ABC paid the owners of XYZ a total purchase price of P4,500,000. How much is the goodwill that ABC should record from this acquisition?    *refer to attached photo

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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ABC Corporation purchased XYZ Inc. The latter has the following account balances:
 
The noncurrent assets have a fair value of P4,500,000. ABC paid the owners of XYZ a total purchase price of P4,500,000. How much is the goodwill that ABC should record from this acquisition? 
 
*refer to attached photo
Assets
Cash
P 400,000
Receivables
700,000
Inventory
Noncurrent Assets
2,000,000
5,000,000
Total
P 8,100,000
Liabilities
P 2,000,000
3,000,000
P 5,000,000
Current Liabilities
Noncurrent Liabilities
Total
Transcribed Image Text:Assets Cash P 400,000 Receivables 700,000 Inventory Noncurrent Assets 2,000,000 5,000,000 Total P 8,100,000 Liabilities P 2,000,000 3,000,000 P 5,000,000 Current Liabilities Noncurrent Liabilities Total
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