PROBLEM VII On July 1, 2019, Eya Company acquired 700,000 shares of Agas Company at a price of P13 per share. Eya estimated that the price paid include P1.50 premium in order to gain control over Agas. On this date, the fair values of Agas' identifiable assets and liabilities and their carrying values are given below: Fair Value P2,000,000 11,000,000 Book Value Current assets Property, plant and equipment Liabilities Ordinary shares, P5 par Retained earnings P2,000,000 9,000,000 P3,000,000 5,000,000 3,000,000 1. Determine the amount of goodwill.

PROBLEM VII On July 1, 2019, Eya Company acquired 700,000 shares of Agas Company at a price of P13 per share. Eya estimated that the price paid include P1.50 premium in order to gain control over Agas. On this date, the fair values of Agas' identifiable assets and liabilities and their carrying values are given below: Fair Value P2,000,000 11,000,000 Book Value Current assets Property, plant and equipment Liabilities Ordinary shares, P5 par Retained earnings P2,000,000 9,000,000 P3,000,000 5,000,000 3,000,000 1. Determine the amount of 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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