Zosih Co. acquired 60% of the outstanding stocks of Bimbz for 156,000 cash. The book value of Bimbz net assets is P200,000. Bimbz only over or undervalued assets was a land that has a book value of 100,000 and current value of P170,000. How much is the goodwill or (gain on bargain purchase) to be reported in the consolidated statement of financial position?

Goodwill is calculated as the difference between the fair value and book value of the assets…

Answered: Zosih Co. acquired 60% of the…

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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Zosih Co. acquired 60% of the outstanding stocks of Bimbz for 156,000 cash. The book value of Bimbz net assets is P200,000. Bimbz only over or undervalued assets was a land that has a book value of 100,000 and current value of P170,000. How much is the goodwill or (gain on bargain purchase) to be reported in the consolidated statement of financial position?

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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