goodwill (gain on bargain purchase)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
On January 1, 20x1, AAA Co. acquired all of the identifiable assets and assumed all of the liabilities of BBB, Inc. by paying cash of ₱2,000,000. On this date, the identifiable assets acquired and liabilities assumed have fair values of ₱3,200,000 and ₱1,800,000, respectively.
AAA Co. has estimated restructuring provisions of ₱400,000 representing costs of exiting the activity of BBB, costs of terminating employees of BBB, and costs of relocating the terminated employees.
Requirement: Compute for the
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