Chapter : Goodwill On January 1, 2021, PT Nain purchased the net asset of PT Wuna which will be an additional division of PT Wuna. As of December 31, 2020, below is the book value of PT Wuna: PT Nain hires Indah Public Appraisal Service Office to calculate the fair value of PT Wuna. The appraiser's report shows that 10% of accounts receivable are uncollectible, the value of stock investment has increased by 25%, inventories are having obsolescence by 10%, while the company's fixed assets are understated by 200,000. Instructions: a. On December 31, 2021, the balance of net assets for Wuna division (including goodwill) amounted to $3.500.000. Company estimates that the present value of net cash flows from Wuna division is $3.350.000. While the fair value less cost to sell is $3.250.000. Prepare the journal entry regarding the situation!
Chapter : Goodwill On January 1, 2021, PT Nain purchased the net asset of PT Wuna which will be an additional division of PT Wuna. As of December 31, 2020, below is the book value of PT Wuna: PT Nain hires Indah Public Appraisal Service Office to calculate the fair value of PT Wuna. The appraiser's report shows that 10% of accounts receivable are uncollectible, the value of stock investment has increased by 25%, inventories are having obsolescence by 10%, while the company's fixed assets are understated by 200,000. Instructions: a. On December 31, 2021, the balance of net assets for Wuna division (including goodwill) amounted to $3.500.000. Company estimates that the present value of net cash flows from Wuna division is $3.350.000. While the fair value less cost to sell is $3.250.000. Prepare the journal entry regarding the situation!
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Chapter : Goodwill
On January 1, 2021, PT Nain purchased the net asset of PT Wuna which will be an additional division of PT Wuna. As of December 31, 2020, below is the book value of PT Wuna:
PT Nain hires Indah Public Appraisal Service Office to calculate the fair value of PT Wuna. The appraiser's report shows that 10% of accounts receivable are uncollectible, the value of stock investment has increased by 25%, inventories are having obsolescence by 10%, while the company's fixed assets are understated by 200,000.
Instructions:
a. On December 31, 2021, the balance of net assets for Wuna division (including goodwill) amounted to $3.500.000. Company estimates that the present value of net cash flows from Wuna division is $3.350.000. While the fair value less cost to sell is $3.250.000. Prepare the journal entry regarding the situation!
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