another entity when the statement of financial position ofamount of assets and liabilities:the acquiree showed net assets of P3,200,000.P4,000,000 cash all of the outstanding ordinary shares ofAt the current year-end, Clever Company purchased foranother entity when the statement of financial position ofthe acquiree showed net assets of P3,200,000.The acquiree revealed the following fair value and carryingCarrying amountFair valueProperty, plant and equipment, netOther assetsLong-term debt5,000,000500,0003,000,0005,750,0002,800,000As a result of the trànsaction, what amount should bereported as goodwill at year-end?a. 350,000b. 250,000c. 750,000d. 800,000

Fair value of net identifiable assets = Carrying amount of net assets ± Fair value changes…

amount of assets and liabilities: another entity when the statement of financial position of P4,000,000 cash all of the outstanding ordinary shares of At the current year-end, Clever Company purchased for the acquiree showed net assets of P3,200,000. other entity when the statement of financial position of he acquiree showed net assets of P3,200,000. The acquiree revealed the following fair value and carrying Carrying amount Fair value Property, plant and equipment, net Other assets Long-term debt 5,000,000 500,000 3,000,000 5,750,000 2,800,000 As a result of the trànsaction, what amount should be reported as goodwill at year-end? a. 350,000 b. 250,000 c. 750,000 d. 800,000

amount of assets and liabilities: another entity when the statement of financial position of P4,000,000 cash all of the outstanding ordinary shares of At the current year-end, Clever Company purchased for the acquiree showed net assets of P3,200,000. other entity when the statement of financial position of he acquiree showed net assets of P3,200,000. The acquiree revealed the following fair value and carrying Carrying amount Fair value Property, plant and equipment, net Other assets Long-term debt 5,000,000 500,000 3,000,000 5,750,000 2,800,000 As a result of the trànsaction, what amount should be reported as goodwill at year-end? a. 350,000 b. 250,000 c. 750,000 d. 800,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Prepare and compute for the CONSOLIDATED TOTAL LIABILITIES at the date of acquisition.
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