On 1/1/2020 Company A acquired the netassets of Company B for a price of 296,000JD, the fair value of net assets of companyB is 180,000 JD. On 1/1/2021 the fair valueof unit is 560,000 JD carrying value of netassets (excluding goodwill) 480,000 JD fairvalue of net assets 460,000 JD. Computeimpairment loss.Select one:а. 12000O b. 14000O c. 16000O d. 18000

Impairment are defined as the difference between the book value and the fair market value, and they…

On 1/1/2020 Company A acquired the ne assets of Company B for a price of 296, JD, the fair value of net assets of compa B is 180,000 JD. On 1/1/2021 the fair val of unit is 560,000 JD carrying value of r assets (excluding goodwill) 480,000 JD value of net assets 460,000 JD. Compu

On 1/1/2020 Company A acquired the ne assets of Company B for a price of 296, JD, the fair value of net assets of compa B is 180,000 JD. On 1/1/2021 the fair val of unit is 560,000 JD carrying value of r assets (excluding goodwill) 480,000 JD value of net assets 460,000 JD. Compu

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

The goodwill of DD was due to the acquisition of P on December 1, 2022. The carrying amount and fair value of the assets and liabilities of Puppy as of the date of acquisition were as follows: Accounts Carrying Amount Fair Value Cash P50,000 P50,000 Accounts receivable 500,000 500,000 Inventory 1,000,000 1,500,000 Investment property 0 350,000 Property, plant and equipment 2,000,000 3,150,000 Liabilities 2,000,000 2,000,000 The bookkeeper of DD recorded goodwill at the excess of purchase price over the book value of the net assets of P at P1,850,000. How much should DD report goodwill as of December 31, 2022?
On January 1, 2022, P Company acquired 80% of S Company forP2,000,000. The fair value of identifiable net assets is P1,800,000. NCI ismeasured at fair value. During 2022, P Company ships merchandise to SCompany costing P1,000, 000 at 20% above cost. Additional data are asfollows:P Company S CompanySales 5,500,000 2,500,000Cost of Sales 3,200,000 1,600,000Operating Expense 650,000 300,000The ending inventories of S Company includes merchandise from PCompany amounting to P60,000. Impairment of goodwill is P20,000.How much is the consolidated gross profit?
16
Blue sky company’s balance sheet dated 12/31/2020 reports 6 million And assets in 2.4 million in liabilities book values for all the firms assets, approximate their fair values except for land which has the book value that is 360,000 lower than it’s fair value on December 31 Horatio corporation pay 6.12 million to acquire blue sky as a result of the purchase, Horacio should record a Goodwill amount of. please give me answer fast
AAA Inc. Was merge into BBB Corp. in a combination properly accounted for as acquisition of interest. Their condensed Statement of Financial Position before the combination show: ввB Cогр. 88,000 420,000 1,119,600 1,040,000 260,000 171,600 AAA Inc. Cash 88,000 500,000 1,700,000 4,654,000 Accounts Receivable, net Inventory Property Plant and Equipment Patent Accounts Payable Mortgage Payable Capital Stock, par P100 Share Premium Retained Earnings 1,000,000 1,704,000 2,600,000 390,000 1,300,000 390,000 1,066,000 1,248,000 As per independent appraiser's report, BBB's assets have fair market value of P1,653,600 for current assets, P1,248,000 for plant and equipment and P338,000 for patents. BBB's liabilities are properly valued. AAA purchases BBB's net asset for P4,000,000. Compute for the consolidated asset after acquisition.
Assume that ABC, Inc, acquires a competitor's assets on June 10, 2020. The purchase price was $150,000. Of that amount, $125,000 is allocated to tangible assets and $25,000 is allocated to goodwill (a §197 intangible asset). What is ABC, Inc. amortization deduction for 2020? (Round final answer to the nearest whole number.) a) $25,000. b) $1,667. c) $972. d) $833. e) None of the above.
D1. Account
A fixed asset with a cost of $25,974 and accumulated depreciation of $23,377 is traded for a similar asset priced at $40,828 (fair market value) in a transaction with commercial substance. Assuming a trade-in allowance of $4,683, the cost basis of the new asset is Select the correct answer. $43,425 $38,742 $40,828 $36,145
Domestic
Background: On December 31, 2021, Company A purchased acquired various assets from Company B as follows:and assumed liabilities does not meet the definition of a business under ASC 805.UmbrellaTableLemon squeezerThe books and records of Company B value these assets at December 31, 2021 as followsUmbrella $100Table $50Lemon squeezer $150Company B determined the fair value for these assets on January 1, 2022 to be as follows:Umbrella $80Table $20Lemon squeezer $100On December 31, 2021, Company A paid $350 for these assets. Question How should the acquired asset be valued and reflected on Company A's books on January 1, 2022? US GAAP standards used: ASC_____,EY FRD Business Combinations, p. Methodology applied: Calculation: Findings: Conclusion:
Fairgate Company’s 12/31/19 statement of financial position reports assets of $6,000,000 and liabilities of $2,500,000. All of the book values of Fairgate’s assets approximate their fair value, except for land, which has a fair value that is $400,000 greater than its book value. On 12/31/19, Morris Corporation paid $6,500,000 to acquire Fairgate. What amount of goodwill should Morris record as a result of this purchase?
Fairgate Company’s 12/31/21 statement of financial position reports assets of $6,000,000 and liabilities of $2,500,000. All of the book values of Fairgate’s assets approximate their fair value, except for land, which has a fair value that is $400,000 greater than its book value. On 12/31/21, Morris Corporation paid $6,500,000 to acquire Fairgate. What amount of goodwill should Morris record as a result of this purchase?