Botiating to acquire Het assets öf Magenta Company. Purple is willing to pay goodwill computed by capitalizing at 25% Magenta's average earnings in excess of the 10% normal rete pased on appraised value of net assets. Magenta's income for the past three years average P3,000,00 Magenta's assets and liabilities are: Book value Assets, excluding goodwill Liabilities P30,000,000 10,500,000 Appraised value P39,000,000 10,500,000 Shat is the amount of goodwill?

Botiating to acquire Het assets öf Magenta Company. Purple is willing to pay goodwill computed by capitalizing at 25% Magenta's average earnings in excess of the 10% normal rete pased on appraised value of net assets. Magenta's income for the past three years average P3,000,00 Magenta's assets and liabilities are: Book value Assets, excluding goodwill Liabilities P30,000,000 10,500,000 Appraised value P39,000,000 10,500,000 Shat is the amount of goodwill?

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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