The VV Company had these accounts at the time it was acquired by Bush Co.: Cash - P36,000; Accounts receivable - P457,000; Inventories - P120,000; Plant, property, and equipment - P696,400; and Accounts payable - P350,800. Bush Co. paid P1,400,000 for net assets of VV Company. It was determined that fair market values of inventories and plant, property, and equipment were P133,000 and P900,000, respectively. An assumed contingent liability arising from past events with a fair value amounting to P10,000 and such amount is considered a reliable measurement. Bush is the lessee of VV in an operating lease that is favorable for an amount of P50,000. In the books of Bush Co., this transaction resulted in: A. Goodwill recorded at P184,800 B. Goodwill is zero C. Goodwill recorded at P284,800 D. Goodwill recorded at P234,800
The VV Company had these accounts at the time it was acquired by Bush Co.: Cash - P36,000;
A.
B. Goodwill is zero
C. Goodwill recorded at P284,800
D. Goodwill recorded at P234,800
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