If CARDO Co purchases the net assets of SYANO Co by issuing 5,000 shares of their P20 par value shares with a fair value of P40 per share, incurs a mortgage loan for P90,000, pays P150,000 cash and paying direct, indirect and stock issue costs of P75,000, P50,000 and P40,000 respective.    Compute for the goodwill

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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If CARDO Co purchases the net assets of SYANO Co by issuing 5,000 shares of their P20 par value shares with a fair value of P40 per share, incurs a mortgage loan for P90,000, pays P150,000 cash and paying direct, indirect and stock issue costs of P75,000, P50,000 and P40,000 respective. 

 

Compute for the goodwill

The following balances were taken from the trial balance of CARDO Company and SYANO Company at the
start of the fiscal year 20x7:
CARDO COMPANY
Book Value
Fair Value
Book Value
Fair Value
Cash
Accounts Receivable
Accounts Payable
P450,000
200,000
P500,000
250,000
155,000
600,000
P500,000
240,000 Mortgage Payable
200,000 Ordinary Shares
520,000 Retained Earnings
P440,000
220,000
LO
595,000
260,000
Inventory
Fixed Assets (Net)
SYANO COMPANY
Book Value
Fair Value
Book Value
Fair Value
Accounts Payable
P350,000
200,000
250,000
175,000
P340,000
220,000
Cash
P300,000
150,000
125,000
400,000
P300,000
160,000 Mortgage Payable
100,000 Ordinary Shares
420,000 Retained Earnings
Accounts Receivable
Inventory
Fixed Assets (Net)
RS
Transcribed Image Text:The following balances were taken from the trial balance of CARDO Company and SYANO Company at the start of the fiscal year 20x7: CARDO COMPANY Book Value Fair Value Book Value Fair Value Cash Accounts Receivable Accounts Payable P450,000 200,000 P500,000 250,000 155,000 600,000 P500,000 240,000 Mortgage Payable 200,000 Ordinary Shares 520,000 Retained Earnings P440,000 220,000 LO 595,000 260,000 Inventory Fixed Assets (Net) SYANO COMPANY Book Value Fair Value Book Value Fair Value Accounts Payable P350,000 200,000 250,000 175,000 P340,000 220,000 Cash P300,000 150,000 125,000 400,000 P300,000 160,000 Mortgage Payable 100,000 Ordinary Shares 420,000 Retained Earnings Accounts Receivable Inventory Fixed Assets (Net) RS
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