On July 1, 2019, Parent Company acquired the net assets of Subsidiary Company for a consideration transferred of P32,000,000. At the acquisition date, the carrying amount of Subsidiary's net assets was P20,000,000 and a temporary appraisal of P28,000,000 was attributed to the net assets. At December 31, 2019, a provisional fair value of P26,000,000 was attributed to the net assets. An additional valuation received on March 31, 2020 increased this provisional fair value by P2,000,000 and on June 1, 2020 this fair value was finalized with a decreased by P4,000,000 from the last valuation date. What amount should the surviving company present for goodwill in its separate statement of financial position at December 31, 2020? *
On July 1, 2019, Parent Company acquired the net assets of Subsidiary Company for a consideration transferred of P32,000,000. At the acquisition date, the carrying amount of Subsidiary's net assets was P20,000,000 and a temporary appraisal of P28,000,000 was attributed to the net assets. At December 31, 2019, a provisional fair value of P26,000,000 was attributed to the net assets. An additional valuation received on March 31, 2020 increased this provisional fair value by P2,000,000 and on June 1, 2020 this fair value was finalized with a decreased by P4,000,000 from the last valuation date. What amount should the surviving company present for goodwill in its separate statement of financial position at December 31, 2020? *
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:On July 1, 2019, Parent Company acquired the net assets of Subsidiary Company for a
consideration transferred of P32,000,000. At the acquisition date, the carrying amount of
Subsidiary's net assets was P20,000,000 and a temporary appraisal of P28,000,000 was
attributed to the net assets. At December 31, 2019, a provisional fair value of P26,000,000 was
attributed to the net assets. An additional valuation received on March 31, 2020 increased this
provisional fair value by P2,000,000 and on June 1, 2020 this fair value was finalized with a
decreased by P4,000,000 from the last valuation date. What amount should the surviving
company present for goodwill in its separate statement of financial position at December 31,
2020? *
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