Lee Company is contemplating the purchase of the net assets of Min Company for P800,000 cash. To contemplate the transactin, direct acquisition costs are P15,000. The balance sheet of Min Company on the purchse date is as follows: Min Company Balance Sheet December 31, 2020 Assets Liabilities & Equity Current Assets 80,000 Liabilities 100,000 Land 50,000 Common Stock, P10 par 100,000 Building 450,000 Paid-in capital in excess of par 150,000 Accumulated Depreciation (200,000) Retained Earnings 230,000 Equipment 300,000 Accumulated Depreciation (100,000) Total P580,000 Total 580,000 The following fair values were obtained for Min's assets and liabilities: Current Assets 100,000 Equipment 275,000 Land 75,000 Liabilities 102,000 Building 300,000 Determine the goodwill that resulted from the business combination?
Lee Company is contemplating the purchase of the net assets of Min Company for P800,000 cash. To contemplate the transactin, direct acquisition costs are P15,000. The
Min Company
Balance Sheet
December 31, 2020
Assets Liabilities & Equity
Current Assets 80,000 Liabilities 100,000
Land 50,000 Common Stock, P10 par 100,000
Building 450,000 Paid-in capital in excess of par 150,000
Equipment 300,000
Accumulated Depreciation (100,000)
Total P580,000 Total 580,000
The following fair values were obtained for Min's assets and liabilities:
Current Assets 100,000 Equipment 275,000
Land 75,000 Liabilities 102,000
Building 300,000
Determine the
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