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
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
Section: Chapter Questions
Problem 1PS
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Question
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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6e0b30ae-4488-4483-8129-d9433494febd%2F21312bf3-feda-4823-9b79-570a5a843860%2Fb9jw73l_processed.png&w=3840&q=75)
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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