PROBLEM 3On June 1, 20x9, CAP CÓ paid P800,000 for the net assets of SHER CO. the carrying values for SHER's assetsand liabilities on June 1, 20x9 follow:Cash150,000Accounts Receivable180,000Capitalized Software CostsGoodwill320,000100,000130,000LiabilitiesOn June 1, SHER's accounts receivable had a fair value of P40,000, lesser than its carrying amount. Additionally,SHER's in process research and development was estimated to have a fair value of P200,000. All other itemswere stated at their fair values.On the June 1, combined balance sheet, how much is reported for goodwill?

On 01.06.20x9, CAP CO. paid = P800000 for net assets of SHER CO. The balance sheet of the SHER CO.…

Answered: On the June 1, combined balance sheet,…

Business

Accounting

On the June 1, combined balance sheet, how much is reported for goodwill?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

PROBLEM 3
On June 1, 20x9, CAP CÓ paid P800,000 for the net assets of SHER CO. the carrying values for SHER's assets
and liabilities on June 1, 20x9 follow:
Cash
150,000
Accounts Receivable
180,000
Capitalized Software Costs
Goodwill
320,000
100,000
130,000
Liabilities
On June 1, SHER's accounts receivable had a fair value of P40,000, lesser than its carrying amount. Additionally,
SHER's in process research and development was estimated to have a fair value of P200,000. All other items
were stated at their fair values.
On the June 1, combined balance sheet, how much is reported for goodwill?

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