On July 1, 2018, Good Cop Company acquired 100% of Bad Cop Company for a consideration transferred of P80 million and pays P500,000 business combination expenses. 2/5 is attributable to share issue costs, 2/5 direct costs and 1/5 for indirect costs. At the acquisition date, the carrying amount of Bad Company's net assets was P50 million with provisional fair value of P60 million. An additional valuation received on May 1, 2019 increased this provisional valuation to P65 million, and on July 30, 2019 this fair value was finalized at P70 million. 1. What amount should Good Cop Company present for goodwill in its statement of financial position on December 31, 2019?

On July 1, 2018, Good Cop Company acquired 100% of Bad Cop Company for a consideration transferred of P80 million and pays P500,000 business combination expenses. 2/5 is attributable to share issue costs, 2/5 direct costs and 1/5 for indirect costs. At the acquisition date, the carrying amount of Bad Company's net assets was P50 million with provisional fair value of P60 million. An additional valuation received on May 1, 2019 increased this provisional valuation to P65 million, and on July 30, 2019 this fair value was finalized at P70 million. 1. What amount should Good Cop Company present for goodwill in its statement of financial position on December 31, 2019?

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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