Need help with this question solution general accounting The cash purchase price in a stock acquisition is $800,000; the bookvalue of the acquired company is $620,000. The book values ofequipment, land and patents need to be adjusted ($24,000), ($46,000)and $118,000 respectively.Goodwill, if any, is recorded at:a. $0.b. $180,000.c. $62,000.d. $132,000.

Step 1: Computation of adjusted book valueBook value = $620,000The value of equipment needs to be…

Answered: The cash purchase price in a stock…

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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The fair value of plant and Machinery was, however OMR 200,000. The company will incur OMR 50,000 of direct acquisition costs and OMR 10,000 in stock issue costs. What is the journal entry acquisition of cost expenses? Select one: a. Acquisition cost expenses Dr 50,000 Cash Cr 50,000 b. Acquisition cost expenses Dr 10,000 Cash Cr 10,000 c. Acquisition cost expenses 200,000 Cash Cr 200,000 d. None of the other points
High Company purchased for cash at P5,0 per share ll 150,000 ordinary shares outstanding of another entity. The statement of financial position of the acquiree on the date of acquisition showed net assets with a carrying amount of P6,000,000. The fair value of property, plant, and equipment on same date was P800,000 in excess of carrying amount. What amount should be recorded as goodwill on the date of purchase? a. 1,500,000 b. 800,000 700,000 d. с.
COMPUTE FOR THE GOODWILL.
please answer do not image.
On 1/1/2020, X Company acquired 100% of Y Company's Net assets for $150,000 cash. The Book value of Y's Net assets was equal to the fair value of Y Company's net assets at the date of acquisition except for Land (included in fixed assets) its market value was less than the book value by $1,000, the balance sheet data at 1/1/2020, are as follows: item X co Y co cash 404,000 150,000 Fixed assets 100,000 66,000 Liabilities 144,000 72,000 Common stock 120,000 60,000 Retained earning 240,000 84,000 required: if the acquisition are merger record the journal entries and prepare x balance sheet after the merger
At the time of acquisition X & Y Co., stock issue expected cost expenses OMR 48,000. Finally, acquisition cost was OMR 64,000. How much will record in the income statement. Select one: a. OMR 48,000 b. OMR 64,000 c. OMR 16,000 d. OMR 112,000
how much is the goodwill to be reported on january 31, 2022 ?
Cozzi Company is being purchased and has the following balance sheet as of the purchase date: $ 90,000 290,000 $380,000 Current assets $200,000 Liabilities Fixed assets 180,000 Equity Total $380 000 Total The price paid for Cozzi's net assets is $500,000. The fixed assets have a fair value of $220,000, and the liabilities have a fair value of $110,000. The amount of goodwill to be recorded in the purchase is O $150,000 SO O $170,000 O $190,000
6. Tulip Company purchased the net assets of another entity for P2,000,000. On the sate of the transaction, the acquire had P800,000 of liabilities The assets of the acquiree at fair value were $1,900,000 for current assets and P1,600,000 for noncurrent assets. What is the amount of gain on bargain purchase? a. P 700,000 b. P-700,000 c. P 800,000 d. P-800,000
1. S acquired 100 percent of F for P275,000. At the date of acquisition, F had the following book and market values: (see image below) What is the amount of the "Investment in F" account on S's financial records at the acquisition date? * Book Value Market Value P30,000 Cash and Receivables P30,000 100,000 210,000 Inventory Plant Assets (net) Current Liabilities 120,000 300,000 (45,000) (115,000) (45,000) (115,000) (10,000) (170,000) Long-term Debf Common Stock Retained Earnings
Hoover Company acquired Burgess Company for $1,200,000 cash. The fair value of Burgess's assets was $1,040,000, and the company had liabilities of $60,000. Which of the following journal entries would be used to record the purchase of Burgess Company? Multiple Choice Burgess assets Burgess liabilities Goodwill Cash Burgess assets Cash 1,040,000 60,000 100,000 1,200,000 1,200,000 1,200,000
How much is the cost of investment? how much is the goodwill to be reported on January 31, 2022?

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