Condensed statements of financial position of Care Corp and Charm Corp as of December 2021 are as follows: Care Current Assets 43,750 Noncurrent Assets 181,250 Liabilities 16,250 Common Stock, P20 par 137,500 APIC 8,750 Retained Earnings 62,500 Charm Current Assets 16,250 Noncurrent Assets 106,250 Liabilities 8,750 Common Stock, P20 par 75,000 APIC 6,250 Retained Earnings 32,500 On January 1, 2022 Care Corp issued 8,750 shares with a market value of P25/share for the assets and liabilities of Charm Corp. The book values reflects the fair value of the assets and liabilities, except that non current assets of Charm have a temporary appraisal value of 157,500 and the noncurrent assets of Care Corp is overstated by 7,500. Contingent consideration, which is determinable, is equal to 3,750. Care also paid for the share issuance cost of 8,500 and other acquisition related cost of 4,750. On March 1, the contingent consideration has a determinable amount of 5,000 and on the same date the provisional fair value of the noncurrent assets of Charm increased by 2,250. 17. What is the goodwill at the end of 2022?

Condensed statements of financial position of Care Corp and Charm Corp as of December 2021 are as follows: Care Current Assets 43,750 Noncurrent Assets 181,250 Liabilities 16,250 Common Stock, P20 par 137,500 APIC 8,750 Retained Earnings 62,500 Charm Current Assets 16,250 Noncurrent Assets 106,250 Liabilities 8,750 Common Stock, P20 par 75,000 APIC 6,250 Retained Earnings 32,500 On January 1, 2022 Care Corp issued 8,750 shares with a market value of P25/share for the assets and liabilities of Charm Corp. The book values reflects the fair value of the assets and liabilities, except that non current assets of Charm have a temporary appraisal value of 157,500 and the noncurrent assets of Care Corp is overstated by 7,500. Contingent consideration, which is determinable, is equal to 3,750. Care also paid for the share issuance cost of 8,500 and other acquisition related cost of 4,750. On March 1, the contingent consideration has a determinable amount of 5,000 and on the same date the provisional fair value of the noncurrent assets of Charm increased by 2,250. 17. What is the goodwill at the end of 2022?

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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