When we purchase a company in any value and the amount paid by us is more than the net assets value of the company then the balance amount which is paid in excess is transferred to the goodwill account. This type of goodwill arises when there more amount paid by us and we received less net assets. Requirement 1: To calculate: Amount of goodwill.

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Answer 1

Question

Chapter A2, Problem 30E

To determine

Concept introduction:

When we purchase a company in any value and the amount paid by us is more than the net assets value of the company then the balance amount which is paid in excess is transferred to the goodwill account. This type of goodwill arises when there more amount paid by us and we received less net assets.

Requirement 1:

To calculate:

Amount of goodwill.

To determine

Concept introduction:

When we purchase a company in any value and the amount paid by us is more than the net assets value of the company then the balance amount which is paid in excess is transferred to the goodwill account. This type of goodwill arises when there more amount paid by us and we received less net assets.

Requirement 2:

To prepare:

Journal Entry of the business purchases.

To determine

Concept introduction:

When we purchase a company in any value and the amount paid by us is more than the net assets value of the company then the balance amount which is paid in excess is transferred to the goodwill account. This type of goodwill arises when there more amount paid by us and we received less net assets.

Requirement 3:

To prepare:

Journal Entry if we acquired the net assets of the company.

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Students have asked these similar questions

September 1, 2020, Winans Corporation acquired Aumont Enterprises for a cash payment of $700,000. At the time of purchase, Aumont's balance sheet showed assets of $620,000, liabilities of $200,000, and owners' equity of $420,000. The fair value of Aumont's assets is estimated to be $800,000. Compute the amount of goodwill recorded by Winans in the acquisition.

On January 1, 2025, Lili Company acquired the identifiable net assets of Jen Inc. On this date, the identifiable assets acquired and liabilities assumed have fair values of P 7,680,000 and P4,320,000 respectively. Lili Co. incurred the following acquisition related costs: legal fees, P48,000; due diligence costs, P48,000; and general and administrative costs of maintaining an internal acquisition, P96,000. As consideration, Lili Co. transferred 9,600 of its own shares with par value and fair value per share of P400 and P500 respectively, too Jen's former owners. Costs of registering the shares (previously issued and newly issued) amounted to P192,000 (P24,000 pertains to listing fees of previously issued shares). How much is the total amount charged to profit or loss in relation to the transaction above?

Please Compute the Goodwill on the Acquisition Data. That is all of the Information that is needed for the question Also Please make sure it is correct

Answer 2

Question

Chapter A2, Problem 30E

To determine

Concept introduction:

When we purchase a company in any value and the amount paid by us is more than the net assets value of the company then the balance amount which is paid in excess is transferred to the goodwill account. This type of goodwill arises when there more amount paid by us and we received less net assets.

Requirement 1:

To calculate:

Amount of goodwill.

To determine

Concept introduction:

When we purchase a company in any value and the amount paid by us is more than the net assets value of the company then the balance amount which is paid in excess is transferred to the goodwill account. This type of goodwill arises when there more amount paid by us and we received less net assets.

Requirement 2:

To prepare:

Journal Entry of the business purchases.

To determine

Concept introduction:

When we purchase a company in any value and the amount paid by us is more than the net assets value of the company then the balance amount which is paid in excess is transferred to the goodwill account. This type of goodwill arises when there more amount paid by us and we received less net assets.

Requirement 3:

To prepare:

Journal Entry if we acquired the net assets of the company.

Expert Solution & Answer

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Answer 3

Question

Chapter A2, Problem 30E

To determine

Concept introduction:

When we purchase a company in any value and the amount paid by us is more than the net assets value of the company then the balance amount which is paid in excess is transferred to the goodwill account. This type of goodwill arises when there more amount paid by us and we received less net assets.

Requirement 1:

To calculate:

Amount of goodwill.

To determine

Concept introduction:

When we purchase a company in any value and the amount paid by us is more than the net assets value of the company then the balance amount which is paid in excess is transferred to the goodwill account. This type of goodwill arises when there more amount paid by us and we received less net assets.

Requirement 2:

To prepare:

Journal Entry of the business purchases.

To determine

Concept introduction:

When we purchase a company in any value and the amount paid by us is more than the net assets value of the company then the balance amount which is paid in excess is transferred to the goodwill account. This type of goodwill arises when there more amount paid by us and we received less net assets.

Requirement 3:

To prepare:

Journal Entry if we acquired the net assets of the company.

Expert Solution & Answer

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See solution

Answer 4

Question

Chapter A2, Problem 30E

To determine

Concept introduction:

When we purchase a company in any value and the amount paid by us is more than the net assets value of the company then the balance amount which is paid in excess is transferred to the goodwill account. This type of goodwill arises when there more amount paid by us and we received less net assets.

Requirement 1:

To calculate:

Amount of goodwill.

To determine

Concept introduction:

When we purchase a company in any value and the amount paid by us is more than the net assets value of the company then the balance amount which is paid in excess is transferred to the goodwill account. This type of goodwill arises when there more amount paid by us and we received less net assets.

Requirement 2:

To prepare:

Journal Entry of the business purchases.

To determine

Concept introduction:

When we purchase a company in any value and the amount paid by us is more than the net assets value of the company then the balance amount which is paid in excess is transferred to the goodwill account. This type of goodwill arises when there more amount paid by us and we received less net assets.

Requirement 3:

To prepare:

Journal Entry if we acquired the net assets of the company.

Expert Solution & Answer

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See solution

Answer 5

Chapter A2, Problem 30E

To determine

Concept introduction:

When we purchase a company in any value and the amount paid by us is more than the net assets value of the company then the balance amount which is paid in excess is transferred to the goodwill account. This type of goodwill arises when there more amount paid by us and we received less net assets.

Requirement 1:

To calculate:

Amount of goodwill.

To determine

Concept introduction:

When we purchase a company in any value and the amount paid by us is more than the net assets value of the company then the balance amount which is paid in excess is transferred to the goodwill account. This type of goodwill arises when there more amount paid by us and we received less net assets.

Requirement 2:

To prepare:

Journal Entry of the business purchases.

To determine

Concept introduction:

When we purchase a company in any value and the amount paid by us is more than the net assets value of the company then the balance amount which is paid in excess is transferred to the goodwill account. This type of goodwill arises when there more amount paid by us and we received less net assets.

Requirement 3:

To prepare:

Journal Entry if we acquired the net assets of the company.

Answer 6

Chapter A2, Problem 30E

To determine

Concept introduction:

When we purchase a company in any value and the amount paid by us is more than the net assets value of the company then the balance amount which is paid in excess is transferred to the goodwill account. This type of goodwill arises when there more amount paid by us and we received less net assets.

Requirement 1:

To calculate:

Amount of goodwill.

Answer 7

Chapter A2, Problem 30E

To determine

Concept introduction:

When we purchase a company in any value and the amount paid by us is more than the net assets value of the company then the balance amount which is paid in excess is transferred to the goodwill account. This type of goodwill arises when there more amount paid by us and we received less net assets.

Requirement 1:

To calculate:

Amount of goodwill.

Answer 8

To determine

Concept introduction:

When we purchase a company in any value and the amount paid by us is more than the net assets value of the company then the balance amount which is paid in excess is transferred to the goodwill account. This type of goodwill arises when there more amount paid by us and we received less net assets.

Requirement 2:

To prepare:

Journal Entry of the business purchases.

Answer 9

To determine

Concept introduction:

When we purchase a company in any value and the amount paid by us is more than the net assets value of the company then the balance amount which is paid in excess is transferred to the goodwill account. This type of goodwill arises when there more amount paid by us and we received less net assets.

Requirement 2:

To prepare:

Journal Entry of the business purchases.

Answer 10

To determine

Concept introduction:

When we purchase a company in any value and the amount paid by us is more than the net assets value of the company then the balance amount which is paid in excess is transferred to the goodwill account. This type of goodwill arises when there more amount paid by us and we received less net assets.

Requirement 3:

To prepare:

Journal Entry if we acquired the net assets of the company.

Answer 11

To determine

Concept introduction:

When we purchase a company in any value and the amount paid by us is more than the net assets value of the company then the balance amount which is paid in excess is transferred to the goodwill account. This type of goodwill arises when there more amount paid by us and we received less net assets.

Requirement 3:

To prepare:

Journal Entry if we acquired the net assets of the company.

Answer 12

Expert Solution & Answer

Answer 13

Expert Solution & Answer

Answer 14

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Answer 15

Ch. A2 - How do long-term investments differ from...Ch. A2 - Prob. 2DQ Ch. A2 - Prob. 3DQ Ch. A2 - Prob. 4DQ Ch. A2 - Prob. 5DQ Ch. A2 - Prob. 6DQ Ch. A2 - Prob. 7DQ Ch. A2 - How does the equity method discourage the...Ch. A2 - Prob. 9DQ Ch. A2 - Prob. 10DQ

Solution Summary: The author explains the concept of goodwill, which arises when there more amount paid by us and we received less net assets.

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Chapter A2 Solutions