The goodwill of DD was due to the acquisition of P on December 1, 2022. The carrying amount and fair value of the assets and liabilities of Puppy as of the date of acquisition were as follows: Accounts Carrying Amount Fair Value Cash P50,000 P50,000 Accounts receivable 500,000 500,000 Inventory 1,000,000 1,500,000 Investment property 0 350,000 Property, plant and equipment 2,000,000 3,150,000 Liabilities 2,000,000 2,000,000
The goodwill of DD was due to the acquisition of P on December 1, 2022. The carrying amount and fair value of the assets and liabilities of Puppy as of the date of acquisition were as follows: Accounts Carrying Amount Fair Value Cash P50,000 P50,000 Accounts receivable 500,000 500,000 Inventory 1,000,000 1,500,000 Investment property 0 350,000 Property, plant and equipment 2,000,000 3,150,000 Liabilities 2,000,000 2,000,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
The
Accounts |
Carrying Amount |
Fair Value |
Cash |
P50,000 |
P50,000 |
|
500,000 |
500,000 |
Inventory |
1,000,000 |
1,500,000 |
Investment property |
0 |
350,000 |
Property, plant and equipment |
2,000,000 |
3,150,000 |
Liabilities |
2,000,000 |
2,000,000 |
The bookkeeper of DD recorded goodwill at the excess of purchase price over the book value of the net assets of P at P1,850,000. How much should DD report goodwill as of December 31, 2022?
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