On July 1, 2022 the ABC Company acquired the net assets of XYZ Company for P8,000,000. The recorded assets and liabilities of XYZ Corporation on July 1, 2022, immediately before the acquisition are as follows: Cash P   800,000 Inventory 2,400,000 Property and equipment, net 4,800,000 Liabilities 1,800,000   On July 1, 2022 it was determined that the inventory of XYZ had a fair value of P1,900,000, and the property and equipment, net had a fair value of P5,600,000.   What is the amount of goodwill (gain on bargain purchase) that will be reported in the books of ABC?

Q: 5. Fortune paid $570,000 cash to acquire 100 percent of Sorden Company's net assets on January 1,…

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Q: Record the acquisition of Brem using the acquisition method assuming $659,900 was paid to the former…

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A: Intercompany Elimination -In the process of creating consolidated financial accounts, intercompany…

Q: Halwell Motor Company acquires all of the stock of Ornex Auto Services for $60,000,000 in cash. The…

A: Goodwill:Goodwill is calculated by taking the difference between cash paid for an acquisition and…

Q: Nascent, Inc., acquires 60 percent of Sea-Breeze Corporation for $414,000 cash c Sea-Breeze shares…

A: Amortization plays a crucial role in accurately reflecting the consumption or reduction in value of…

Q: 2. 18,000 shares (representing 9%) of ZZ Company stock for $306,000 AA Company and ZZ Company…

A: The amount of dividend revenue shown in M.T. Glass, Inc.'s 2029 income statement for these two…

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Q: Allerton Company acquires all of Deluxe Company's assets and liabilities for cash on January 1,…

A: Step 1:Calculation of the FV of the net assets received: Step 2:Computation of the goodwill or…

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A: Implied value refers to the price at which a company buys shares of another company, which is not…

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A: SOLUTION-   WORKING NOTE- GAIN ON ASSET  SALE =  ($80 MILLION - $ 48 MILLION)…

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A: Journal entries are prepared to record the financial and non financial transactions of the business.

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A: Consolidation is an activity in which financial statements of a parent and its subsidiary should be…

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A: Goodwill is an intangible asset. It is the value of company's brand name, solid customer base, good…

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A: Formula: Goodwill = Purchase price - Fair value of Assets

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Q: On January 2, 2030, Esko Corp. acquired all the net assets of Tolits Inc. Esko Corp. paid P6,000,000…

A:

Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.