Homework Help is Here – Start Your Trial Now!
Business
Accounting
pls answer and provide solution and explanation

pls answer and provide solution and explanation

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

pls answer and provide solution and explanation

25. Corinthians Company acquired all of Hebrews Corporation's assets and liabilities on January 2, 2020, in a business combination, at that date, Hebrews reported assets with a book value of P624,000 and liabilities of P356,000. Corinthians noted that Hebrews had P40.000 of 4ok-Jindi research and development costs on its books at the acquisition date that did not appear to be 17wk of value. Corinthians also determined that patents developed by Hebrews had a fair value of PI20,000 but had not been recorded by Hebrews. Except for building and equipment, anei -517k Corinthians determined the fair value of all other assets and liabilities reported by Hebrews N- 93K approximated the recorded amounts. In recording the transfer of assets and liabilities to its VNAD 24K books, Corinthians recorded goodwill of P93,000, Corinthians paid P517,000 to acquire Hebrews' assets and liabilities. If the book value of Hebrews' buildings and equipment was P341,000 at the date of acquisition, what was their fair value? a. P441,000 b. P417,000 c. P341,000 d. P417,500 BVNAA : 268,000 BU-Asset - 24K FUNA A 41 (40) Liab 5 nds. (49000) 120 AJ. 704 424K - A FVMA Totat K 61 / 66 4
Transcribed Image Text:25. Corinthians Company acquired all of Hebrews Corporation's assets and liabilities on January 2, 2020, in a business combination, at that date, Hebrews reported assets with a book value of P624,000 and liabilities of P356,000. Corinthians noted that Hebrews had P40.000 of 4ok-Jindi research and development costs on its books at the acquisition date that did not appear to be 17wk of value. Corinthians also determined that patents developed by Hebrews had a fair value of PI20,000 but had not been recorded by Hebrews. Except for building and equipment, anei -517k Corinthians determined the fair value of all other assets and liabilities reported by Hebrews N- 93K approximated the recorded amounts. In recording the transfer of assets and liabilities to its VNAD 24K books, Corinthians recorded goodwill of P93,000, Corinthians paid P517,000 to acquire Hebrews' assets and liabilities. If the book value of Hebrews' buildings and equipment was P341,000 at the date of acquisition, what was their fair value? a. P441,000 b. P417,000 c. P341,000 d. P417,500 BVNAA : 268,000 BU-Asset - 24K FUNA A 41 (40) Liab 5 nds. (49000) 120 AJ. 704 424K - A FVMA Totat K 61 / 66 4
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS