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How much is the adjustment in goodwill as a result of the measurement period adjustment during 2021?

How much is the adjustment in goodwill as a result of the measurement period adjustment during 2021?

FINANCIAL ACCOUNTING
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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Parent Company acquires Subsidiary Company on September 1, 2020. Parent seeks an independent valuation for an item of property, plant and equipment acquired in the combination, and the valuation was not complete by the time Parent authorized for issue its financial statements for the year ended December 31, 2020. At the acquisition date, the item of property, plant and equipment had a remaining useful life of five years with no residual value. In its 2020 annual financial statements, Parent recognized a provisional fair value for the asset of P300,000. Fourteen months after the acquisition date, Parent received the independent valuation, which estimated the asset's acquisition-date fair value as P400,000. How much is the adjustment in goodwill as a result of the measurement period adjustment during 2021?
Transcribed Image Text:Parent Company acquires Subsidiary Company on September 1, 2020. Parent seeks an independent valuation for an item of property, plant and equipment acquired in the combination, and the valuation was not complete by the time Parent authorized for issue its financial statements for the year ended December 31, 2020. At the acquisition date, the item of property, plant and equipment had a remaining useful life of five years with no residual value. In its 2020 annual financial statements, Parent recognized a provisional fair value for the asset of P300,000. Fourteen months after the acquisition date, Parent received the independent valuation, which estimated the asset's acquisition-date fair value as P400,000. How much is the adjustment in goodwill as a result of the measurement period adjustment during 2021?
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