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PROBLEM 3 On June 1, 20x9, CAP CO 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 150,000 180,000 320,000 100,000 130,000 Accounts Receivable Capitalized Software Costs Goodwill CHY 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?

PROBLEM 3 On June 1, 20x9, CAP CO 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 150,000 180,000 320,000 100,000 130,000 Accounts Receivable Capitalized Software Costs Goodwill CHY 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?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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PROBLEM 3 On June 1, 20x9, CAP CO 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 Accounts Receivable Capitalized Software Costs Goodwill 150,000 180,000 320,000 100,000 130,000 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? PROBLEM 4 The following are the balances of LITTLE Company and BOY Company as of January 1, 20x1. Dianne Company BV FV Assets 4,000,000 1,000,000 4,200,000 900,000 Liabilities y of and for the exclusive use of SLU. Reproduction, storing in a retrieval system, distributing, uploading or posting online, or transmitting in any form or by any electronic, mechanical, photocopying, recording, or otherwise of any part of this document, without the prior written permission of SLU, is strictly prohibited. BNTA Corpuz Company Assets Liabilities 3,000,000 2,900,000 500,000 600,000 The companies combined their resources and formed CHAN Co. The new company issues 6,000 shares of 500 par value common stocks with fair value of P600 and pays additional 500,000. The company also incurs direct costs of 50,000 and indirect cost of 20,000. Determine the total assets of Dark Co. immediately after the business combination if contingent expenses of P100,000 are estimated to be incurred after 1 yr.
Transcribed Image Text:PROBLEM 3 On June 1, 20x9, CAP CO 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 Accounts Receivable Capitalized Software Costs Goodwill 150,000 180,000 320,000 100,000 130,000 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? PROBLEM 4 The following are the balances of LITTLE Company and BOY Company as of January 1, 20x1. Dianne Company BV FV Assets 4,000,000 1,000,000 4,200,000 900,000 Liabilities y of and for the exclusive use of SLU. Reproduction, storing in a retrieval system, distributing, uploading or posting online, or transmitting in any form or by any electronic, mechanical, photocopying, recording, or otherwise of any part of this document, without the prior written permission of SLU, is strictly prohibited. BNTA Corpuz Company Assets Liabilities 3,000,000 2,900,000 500,000 600,000 The companies combined their resources and formed CHAN Co. The new company issues 6,000 shares of 500 par value common stocks with fair value of P600 and pays additional 500,000. The company also incurs direct costs of 50,000 and indirect cost of 20,000. Determine the total assets of Dark Co. immediately after the business combination if contingent expenses of P100,000 are estimated to be incurred after 1 yr.
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