On July 1, 2019, the Kyo Co. acquired 100% of Tohru Co. for a consideration transferred of Php160M. At the acquisition date, the carrying amount of Tohru's net assets was Php100M. At the acquisition date, a provisional fair value of Php120M was attributed to the net assets. An additional valuation received on May 31, 2015 increased this provisional fair value to Php135M and on July 30,2020, this fair value was finalized at Php140M. Provide for the journal entry to record goodwill for 2019 and 2020.
On July 1, 2019, the Kyo Co. acquired 100% of Tohru Co. for a consideration transferred of Php160M. At the acquisition date, the carrying amount of Tohru's net assets was Php100M. At the acquisition date, a provisional fair value of Php120M was attributed to the net assets. An additional valuation received on May 31, 2015 increased this provisional fair value to Php135M and on July 30,2020, this fair value was finalized at Php140M. Provide for the journal entry to record goodwill for 2019 and 2020.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On July 1, 2019, the Kyo Co. acquired 100% of Tohru Co. for a consideration transferred of Php160M. At the acquisition date, the carrying amount of Tohru's net assets was Php100M.
At the acquisition date, a provisional fair value of Php120M was attributed to the net assets. An additional valuation received on May 31, 2015 increased this provisional fair value to Php135M and on July 30,2020, this fair value was finalized at Php140M.
Provide for the
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