On July 1, 2019, Shark Company purchased all of the outstanding stock of Sfin Company for P8,000,000. At that time, Sfin Company's statement of financial position showed net assets of P5,000,000. Sfin Company's assets and liabilities had fair market values different from their book values, as follows: Book Fair Value Value Plant assets - net 10M 11.5M Other assets 1M 700,000 Long-term debt 6M 5.6M
On July 1, 2019, Shark Company purchased all of the outstanding stock of Sfin Company for P8,000,000. At that time, Sfin Company's statement of financial position showed net assets of P5,000,000. Sfin Company's assets and liabilities had fair market values different from their book values, as follows: Book Fair Value Value Plant assets - net 10M 11.5M Other assets 1M 700,000 Long-term debt 6M 5.6M
On July 1, 2019, Shark Company purchased all of the outstanding stock of Sfin Company for P8,000,000. At that time, Sfin Company's statement of financial position showed net assets of P5,000,000. Sfin Company's assets and liabilities had fair market values different from their book values, as follows: Book Fair Value Value Plant assets - net 10M 11.5M Other assets 1M 700,000 Long-term debt 6M 5.6M
Hello, I'm having issues with the books problem questions. The problem is looking for the "Goodwill in the consolidated statement of financial position" If the method is needed, we've been told to use Fair value method.
Transcribed Image Text:On July 1, 2019, Shark Company purchased all of the outstanding stock of Sfin Company for
P8,000,000. At that time, Sfin Company's statement of financial position showed net assets of
P5,000,000. Sfin Company's assets and liabilities had fair market values different from their
book values, as follows:
Вok
Fair
Value
Value
Plant assets - net
10M
11.5M
Other assets
1M
700,000
Long-term debt
6M
5.6M
Definition Definition Intangible asset that includes proprietary or intellectual property and brand value of a firm. Goodwill is recorded in the books when a firm purchases another firm and the purchase price is more than the fair value of net identifiable assets of the acquired business. The amount of goodwill is recorded on the asset side of the balance sheet (statement of financial position).
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