P0P3,000,000P3,600,000P4,000,000answer not given Kiwi Co. purchased another entity for P5,000,000 cash. The carryingamount and fair value were associated with this acquisition:CarryingFair valueamountAccounts receivable2,000,0002,000,000Inventory1,000,000500,000Government contractEquipmentShort-term loan payable1,000,000500,000(2,000,000)400,000(2,000,000)Net assets1,400,00020,000,000The fair value associated with the acquired entity's governmentcontract is not based on any legal or contractual relationship. Inaddition, for obvious reason, there is no open market trading for anintangible of this sort. What is the goodwill arising from theacquisition?

Goodwill is an intangible asset of a company which exists due to the company’s customer base, brand…

Kiwi Co. purchased another entity for P5,000,000 cash. The carrying amount and fair value were associated with this acquisition: Carrying Fair value amount Accounts receivable 2,000,000 2,000,000 Inventory 1,000,000 500,000 1,000,000 500,000 Government contract Equipment Short-term loan payable 400,000 (2,000,000) (2,000,000) 20,000,000 Net assets 1,400,000 The fair value associated with the acquired entity's government contract is not based on any legal or contractual relationship. In addition, for obvious reason, there is no open market trading for an intangible of this sort. What is the goodwill arising from the acquisition?

Kiwi Co. purchased another entity for P5,000,000 cash. The carrying amount and fair value were associated with this acquisition: Carrying Fair value amount Accounts receivable 2,000,000 2,000,000 Inventory 1,000,000 500,000 1,000,000 500,000 Government contract Equipment Short-term loan payable 400,000 (2,000,000) (2,000,000) 20,000,000 Net assets 1,400,000 The fair value associated with the acquired entity's government contract is not based on any legal or contractual relationship. In addition, for obvious reason, there is no open market trading for an intangible of this sort. What is the goodwill arising from the acquisition?

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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