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Straight Problem 3: Burrough Corporation concluded that die fair value of Helyar Company was P80, 000 and paid that amount to acquire all of its net assets. Helyar reported assets with a book value of P60.000 and fair value of P98.000 and liabilities with a book value and fair value of P23,000 on the date of combination. Burrough also paid P3,000 to a search firm for finder's fees related to the acquisition. Whatamount Burrough Corporation will record as goodwill?

Straight Problem 3: Burrough Corporation concluded that die fair value of Helyar Company was P80, 000 and paid that amount to acquire all of its net assets. Helyar reported assets with a book value of P60.000 and fair value of P98.000 and liabilities with a book value and fair value of P23,000 on the date of combination. Burrough also paid P3,000 to a search firm for finder's fees related to the acquisition. Whatamount Burrough Corporation will record as goodwill?

FINANCIAL ACCOUNTING
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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Straight Problem 2: Plata Corporation paid P100,000 cash for the net assets of Oro Company, which consisted of the following Book Value Fair Value Current assets P20,000 P 28, 000 Property and equipment 80,000 110,000 Liabilities assumed 20,000 18,000 The property and equipment acquired in the business combination should be recorded at: Straight Problem 3: Burrough Corporation concluded that die fair value of Helyar Company was P80, 000 and paid that amount to acquire all of its net assets. Helyar reported assets with a book value of P60.000 and fair value of P98.000 and liabilities with a book value and fair value of P23,000 on the date of combination. Burrough also paid P3,000 to a search firm for finder's fees related to the acquisition. Whatamount Burrough Corporation will record as goodwill?
Transcribed Image Text:Straight Problem 2: Plata Corporation paid P100,000 cash for the net assets of Oro Company, which consisted of the following Book Value Fair Value Current assets P20,000 P 28, 000 Property and equipment 80,000 110,000 Liabilities assumed 20,000 18,000 The property and equipment acquired in the business combination should be recorded at: Straight Problem 3: Burrough Corporation concluded that die fair value of Helyar Company was P80, 000 and paid that amount to acquire all of its net assets. Helyar reported assets with a book value of P60.000 and fair value of P98.000 and liabilities with a book value and fair value of P23,000 on the date of combination. Burrough also paid P3,000 to a search firm for finder's fees related to the acquisition. Whatamount Burrough Corporation will record as goodwill?
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