on date of acquisition were: Share Capital-P400,000; Share Premium- identifiable net assets was P2,000,000. Smile Company's equity accounts January 1, 2021 for P2,200,000 when the fair value of Smile Company's Pavilion Corp. acquired an 80% interest from Smile Company on P300,000; and Retained Earnings-P900,000. The price difference between the carrying value and fair value of net asset is attributable to a non-current depreciable asset with 5 years remaining life. Out of P100,000 out of pocket cost, 20% represent indirect cost and the balance is direct cost. Both companies are classified as SMES. Required 1. How much is the goodwill on the date of acquisition? 2. How much is the carrying value of goodwill on December 31, 2022?

on date of acquisition were: Share Capital-P400,000; Share Premium- identifiable net assets was P2,000,000. Smile Company's equity accounts January 1, 2021 for P2,200,000 when the fair value of Smile Company's Pavilion Corp. acquired an 80% interest from Smile Company on P300,000; and Retained Earnings-P900,000. The price difference between the carrying value and fair value of net asset is attributable to a non-current depreciable asset with 5 years remaining life. Out of P100,000 out of pocket cost, 20% represent indirect cost and the balance is direct cost. Both companies are classified as SMES. Required 1. How much is the goodwill on the date of acquisition? 2. How much is the carrying value of goodwill on December 31, 2022?

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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