On January 2, 2019, Tweety Company purchased Sylvester Company at a cost that resulted in recognition of goodwill of P1,000,000, having an expected benefit period of 10 years. During the first quarter of 2019, Tweety spent an additional P400,000 on expenditures designed to maintain goodwill. expenditures, at December 31, 2019, Tweety estimated that the benefit period of goodwill was 20 years. Due to these In its December 31, 2019 statement of financial position, what amount should Tweety Company report as goodwill? Answer: 1,000,000 Give a solution to this answer.
On January 2, 2019, Tweety Company purchased Sylvester Company at a cost that resulted in recognition of goodwill of P1,000,000, having an expected benefit period of 10 years. During the first quarter of 2019, Tweety spent an additional P400,000 on expenditures designed to maintain goodwill. expenditures, at December 31, 2019, Tweety estimated that the benefit period of goodwill was 20 years. Due to these In its December 31, 2019 statement of financial position, what amount should Tweety Company report as goodwill? Answer: 1,000,000 Give a solution to this answer.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On January 2, 2019, Tweety Company purchased Sylvester Company at a cost that resulted in recognition of goodwill of P1,000,000, having an expected benefit period of 10 years. During the first quarter of 2019, Tweety spent an additional P400,000 on expenditures designed to maintain goodwill. expenditures, at December 31, 2019, Tweety estimated that the benefit period of goodwill was 20 years. Due to these
In its December 31, 2019 statement of financial position, what amount should Tweety Company report as goodwill?
Answer: 1,000,000
Give a solution to this answer.
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