High Company purchased for cash at P50 per share all 150,000 ordinary shares outstanding of another entity. The statement of financial position of the acquiree on the date of acquisition showed net assets with a carrying amount of P6,000,000. The fair value of property, plant, and equipment on same date was P800,000 in excess of carrying amount. What amount should be recorded as goodwill on the date of purchase? а. 1,500,000 b. 800,000 700,000 d. с.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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High Company purchased for cash at P5,0 per share ll
150,000 ordinary shares outstanding of another entity. The
statement of financial position of the acquiree on the date of
acquisition showed net assets with a carrying amount of
P6,000,000.
The fair value of property, plant, and equipment on same
date was P800,000 in excess of carrying amount.
What amount should be recorded as goodwill on the date of
purchase?
a. 1,500,000
b.
800,000
700,000
d.
с.
Transcribed Image Text:High Company purchased for cash at P5,0 per share ll 150,000 ordinary shares outstanding of another entity. The statement of financial position of the acquiree on the date of acquisition showed net assets with a carrying amount of P6,000,000. The fair value of property, plant, and equipment on same date was P800,000 in excess of carrying amount. What amount should be recorded as goodwill on the date of purchase? a. 1,500,000 b. 800,000 700,000 d. с.
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