HIJ and KLM exchanged equity interest resulting to HIJ obtaining control over KLM. Relevant information follows: HIJ (before combination) Consolidated Identifiable assets 2,200,000.00 3,600,000.00 Goodwill ? Total Assets 2,200,000.00 ? Liabilities 700,000.00 1,300,000.00 Share Capital (P20 par) 800,000.00 976,000.00 Share Premium 300,000.00 1,092,000.00 Retained Earnings 400,000.00 ? Total Liabilities and Equity 2,200,000.00 ? Requirements: Compute for the Goodwill or (Gain on Bargain Purchase).

HIJ and KLM exchanged equity interest resulting to HIJ obtaining control over KLM. Relevant information follows: HIJ (before combination) Consolidated Identifiable assets 2,200,000.00 3,600,000.00 Goodwill ? Total Assets 2,200,000.00 ? Liabilities 700,000.00 1,300,000.00 Share Capital (P20 par) 800,000.00 976,000.00 Share Premium 300,000.00 1,092,000.00 Retained Earnings 400,000.00 ? Total Liabilities and Equity 2,200,000.00 ? Requirements: Compute for the Goodwill or (Gain on Bargain Purchase).

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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Question

HIJ and KLM exchanged equity interest resulting to HIJ obtaining control over KLM. Relevant information follows:
HIJ
(before combination) Consolidated
Identifiable assets
2,200,000.00 3,600,000.00
Goodwill
?
Total Assets
2,200,000.00
?
Liabilities
700,000.00 1,300,000.00
Share Capital (P20 par)
800,000.00
976,000.00
Share Premium
300,000.00 1,092,000.00
Retained Earnings
400,000.00
?
Total Liabilities and Equity
2,200,000.00
?
Requirements: Compute for the Goodwill or (Gain on Bargain Purchase).

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