On June 1, 2021, Cline Company paid P800,000 cash for the assets and liabilities of Renn Corp. The carrying values for Renn's assets and liabilities on June 1, 2021 follow: Cash - P150,000; Accounts receivable - P180,000; Capitalized software costs - P320,000; Goodwill - P100,000; and Liabilities - P130,000. On June 1, 2021, Renn's accounts receivable had a fair value of P140,000. Additionally, Renn's in-process and development costs was estimated to have a fair value of P200,000. Renn Corp. had a contingent liability of P20,000, the fair value of which was P15,000. Renn agreed to indemnify Cline for P10,000 for the contingent liability. All other items were stated at their fair values. On Cline's June 1 balance sheet. How much is reported for goodwill? A. P90,000 B. P85,000 C. P130,000 D. P125,000
On June 1, 2021, Cline Company paid P800,000 cash for the assets and liabilities of Renn Corp. The carrying values for Renn's assets and liabilities on June 1, 2021 follow: Cash - P150,000;
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