What is the goodwill arising from the acquisition?
Q: CARNATION Company purchased an entity for ₱6,000,000 cash on January 31. The book value and fair…
A: Under the accounting terms, goodwill is defined as intangible asset which arises when the buyer…
Q: ) Prepare the journal entry to account for any impairment of goodwill. b) Assume instead that at…
A: Goodwill: Goodwill is an intangible asset. It is defined as the excess of cost of an acquired…
Q: Robinson Company purchased Franklin Company at a price of $2,500,000. The fair market value of…
A: Given information is: Robinson Company purchased Franklin Company at a price of $2,500,000. The…
Q: Flair Company purchased another entity for P8,000,000 at year-end. The carrying amount of the…
A: Goodwill: Goodwill is an intangible asset acquired when one firm buys another. Goodwill is defined…
Q: Chili's, acquired Thallicious for $32,170,000. The fair value of all Thailicioustangible and…
A: Goodwill is the excess of consideration paid over the fair values of net assets of the acquiring…
Q: Moregoodwill Ltd acquired all the assets and liabilities of Lessgoodwill Ltd on 30 June 2021. The…
A: Goodwill will be calculated by subtracting the fair value of net assets identified from the…
Q: On January 1, 20x1, AAA Co. acquired all of the identifiable assets and assumed all of the…
A: The transaction costs concerning the business combination are charged to the profit and loss account…
Q: ABC Corporation purchased XYZ Inc. The latter has the following account balances: The noncurrent…
A: The term goodwill refers to the excess amount that is paid in acquisition over the fair value of net…
Q: Positivity Enterprises accounted for noncurrent assets using the revaluation model. On September 1,…
A: As per IFRS 5 Non current assets held for sale and discontinued operation The revaluation of asset…
Q: Short Corporation acquired Hathaway, Inc., for $32,620,000. The fair value of all Hathaway's…
A: In 2001, According to the Financial Accounting Standards Board (FASB) declared in Statement 142,…
Q: A Ltd owns an owner-occupied asset that is measured using the revaluation model. The asset’s…
A: As per revaluation model, The asset is carried at a revalued amount, being its fair value at the…
Q: Snowy Ltd acquires Pax Ltd on 1 July 2018 for $5,000,000 being the fair value of the consideration…
A: A) Testing cash-genearting unit for impairment On June 30, 2019 Goodwill Net identifiable assets…
Q: On August 1, Hyde, Inc. exchanged productive assets with Wiggins, Inc. Hyde's asset is referred to…
A: GAAP: Generally Accepted Accounting Principles.
Q: arizona corp. acquired the business data systems for $320,000 cash and assumed all liabilites at the…
A: Goodwill: Goodwill is the good reputation developed by a company over years. This is recorded as an…
Q: Atchison Corporation purchased equipment, a building, and land for $1,000,000 ($200,000 in cash and…
A: This is a basket purchase so in this the fair value is used to allocate the purchase of group…
Q: Fortitude Company purchased an entity for P6,000,000 cash on January 31. The book value and fair…
A: Goodwill is an intangible asset for the firm which can be arise only at the time of purchase of the…
Q: How much should Dolly Company report goodwill as of December 31, 2022?
A: Goodwill is the amount of money which has been paid by the acquiring company in excess of the net…
Q: Larceny Company purchased another entity for P8,000,000. The assets and liabilities of the acquiree…
A: Calculation of fair value of net identifiable assets : Particulars Amount Cash P1,000,000…
Q: On December 31, 2021, an entity has a building with cost of Rp500 million and accumulated…
A: Depreciation means the amount of expenses written off from the value of fixed assets used in…
Q: Kiwi Co. purchased another entity for P5,000,000 cash. The carrying amount and fair value were…
A: Goodwill is an intangible asset of a company which exists due to the company’s customer base, brand…
Q: Gulf Company purchases Arab Company for $900,000 cash on January 2, 2019. The book value of Arab…
A: Goodwill refers to an intangible asset that is usually associated with the acquisition of a company…
Q: Required: a) Prepare the journal entry to account for any impairment of goodwill. b) Assume…
A: Goodwill: Goodwill is an intangible asset. It is defined as the excess of cost of an acquired…
Q: Kiwi Co. purchased another entity for P5,000,000 cash. The carrying amount and fair value were…
A: Consolidation is the merger of two or more entities where one large company acquire share capital of…
Q: On March 1, Al-Quds Co. exchanged productive assets with Birzeit Co. Al-Quds's asset is referred to…
A: The following calculations are done for Al-Quds Company.
Q: On January 1, 2022, J Company acquired an intangible asset from a foreign company. The invoice price…
A: The cost of a separately acquired intangible asset comprise: a) its purchase price, including import…
Q: On December 31, 2021, an entity has a building with cost of Rp500 million and accumulated…
A: As per IAS 16- PPE, A decrease arising as a result of a revaluation should be recognized as an…
Q: of P112,000,000. At the acquisition date, the carrying amount of Manila Pen's net assets was…
A: As fair value is given, goodwill under fair value method:-Goodwill=Consideration paid/%…
Q: An entity purchased an investment property on January 1,2020 at a cost of P4,000,000. The property…
A: As per IAS 40 "Investment property", for recording investment property in books of account, one of…
Q: A Ltd purchases the B Ltd for the following consideration of: Cash : $150 000 Land: carrying…
A: Solution: Fair value of net asset of B Ltd = ($390,000 + $95,000 - $70,000) - $195,000 =$200,000
Q: Buchanan Imports purchased McLaren Corporation for $5,000,000 cash when McLaren had net assets worth…
A: 1.
Q: On January 1, 2021 Major acquired 60% of Minor for a cash payment of $600,000. At date of…
A: Formula: Goodwill = Purchase price - Fair value of Assets
Q: On July 1, 2022 the ABC Company acquired the net assets of XYZ Company for P8,000,000. The recorded…
A: Goodwill means the reputation of the company due to any factor like location , product , price ,…
Q: Arizona Corp. acquired the business Data Systems for $320,000 cash and assumed all liabilities at…
A: a. Calculate the goodwill for Arizona Corporation.
Q: Prepare the journal entry to account for any impairment of goodwill. b) Assume instead that at the…
A:
Q: Lake Incorporated purchased all of the stock of Huron Company, paying $950,000 cash. Lake also…
A: Goodwill: Goodwill is a non-physical intangible asset which is generated when a company is acquired…
Q: Rooky acquired Bamboo on December 31,2020 for P500,000. Bamboo's Liabilities and Capital at that…
A: Goodwill:- It is an intangible asset which one shows in the Balance sheet of the company. These…
Q: Hanley acquired 85% of the ordinary share capital of Craig on 30 December 20X7 for $80,000. At this…
A: When an acquirer corporation buys a target corporation, the amount of goodwill often develops in the…
Q: Snowy Ltd acquires Pax Ltd on 1 July 2018 for $5,000,000 being the fair value of the consideration…
A: Fair value of the consideration transferred = $5,000,000 Fair value of net identifiable assets =…
Q: Having an issue with this problem. Thank you
A: Goodwill is the excess amount paid by the company over the fair value of the company in which…
Q: On December 31, 2021, an entity has a building with cost of Rp500 million and accumulated…
A: Disclaimer: Since you have asked multiple questions we only answer the first question for you to…
Q: Robinson Company purchased Franklin Company at a price of $2,500,000. The fair market value of…
A: Goodwill: It can be defined as an intangible asset that is measured when an existing company is…
Q: Snowy Ltd acquires Pax Ltd on 1 July 2018 for $5,000,000 being the fair value of the consideration…
A:
Q: One Corporation concluded that the fair value of Two Company was P160,000 and paid that amount to…
A: One corporation acquired the assets and liabilities at fair value. The following journal entries…
Q: Carla Vista Corporation acquired End-of-the-World Products on January 1, 2020 for $6150000, and…
A: Given information Recorded goodwill = $1,150,000 fair value = $4,482,000 Carrying value =…
Q: Harold Fishing Gear Company's acquired Sea Breeze Ltd for $450,000. The book values and fair values…
A: Solution: Purchase price of Sea Breeze Ltd = $450,000 Fair value of net assets of Sea Breeze = Fair…
Q: Snowy Ltd acquires Pax Ltd on 1 July 2018 for $5,000,000 being the fair value of the consideration…
A: Goodwill: Goodwill is an intangible asset. It is defined as the excess of cost of an acquired…
Q: Lei Company acquired a financial asset at its market value of P4,800,000. Broker fees of P300,000…
A: 1. The fair value of financial asset would be recognized for $4,800,000.
Q: A Ltd purchases the B Ltd for the following consideration of: Cash : $150 000 Land: carrying amount…
A: Goodwill = Purchase consideration paid + Fair value of non controlling interest - Fair value of net…
CARNATION Company purchased an entity for ₱6,000,000 cash on January 31. The book value and fair value of the assets of the acquired entity as of the date of acquisition follow:
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- Topic: Non-Current Assets Held for Sale and Discontinued Operations 13. Which of the following shall be recognized by the entity in its 20x2 financial statements? Held for ale asset Impairment loss a. P700,000 P100,000 b. P650,000 P100,000 c. P650,000 P150,000 d. P0 P100,000 13. Requirement: Provide the journal entry on December 31, 20x2.Topic: Non-Current Assets Held for Sale and Discontinued Operations 11. Which of the following shall be recognized by the entity in its 20x4 financial statements? a. Property, plant and equipment for P400,000 b. Property, plant and equipment for P1,000,000 c. Noncurrent asset held for sale for P950,000 d. Noncurrent asset held for sale for P1,000,000 18. Requirement: Provide the journal entry on December 31, 20x4.6. 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
- Do a to h with proper explanation 1. Assume the following data apply shortly after Python Co. acquires Snakes Co.: P Co. (000s) 450 S Co. (000s) Assets 200 Liabilities 250 125 CS 75 35 APIC/OCC 75 30 RE 50 10 P asset s have a fair value = 435k; S' identifiable assets have a P acquires 80% of S's outstanding voting S' assets include pre-acquisition fair value = 300k. stock for $160k cash. Goodwill of 20k, and P's assets (and S' liabilities) reflect a Loan P has made to S for 10k. The DOA consolidated Balance Sheet should show (hint:: your B/S should balance: a+b-c=d+e+f+g) : a. identifiable assets b. Goodwill (algebraic) liabilities C. d. Common Stock e. АPIC/ОСС f. RE g. Noncontrolling interest h. DifferentialCompany X purchased Company Y for $4,000,000. The net assets of the company purchased were valued at $3,800,000. What asset will be on Company X's balance sheet for $200,000? Goodwill Amortization Not enough info EquipmentUse the following data to determine the total dollar amount of assets to be classified as current assets. Cash and cash equivalents Accounts receivable Inventory Prepaid insurance Stock investments Land Buildings Less: Accumulated depreciation Marigold Corp. Balance Sheet December 31, 2022 $226000 $67000 86500 149000 83000 193000 199500 (53500) 172500 Accounts payable Salaries and wages payable Bonds payable Total liabilities Common stock Retained earnings $126000 11100 161500 $298600 $309400 475500
- How much should be recorded as the purchase price of theindividual PPE items: 5. The old equipment has an original cost of P1,500,000,accumulated depreciation of P600,000, and fair value ofP1,000,000. The new equipment obtained throughexchange has a fair value of P1,200,000. The balance was settled with cash. The exchange will not affect the future cashflows of the entity.The general ledger of Proton Corporation as of December 31, 2022, includes the following accounts: Copyrights P 30,000 Deposits with advertising agency (will be used to promote goodwill) 27,000 Bond sinking fund 70,000 Excess of cost over fair value of identifiable net assets of acquired subsidiary 390,000 Trademarks 120,000 In the preparation of Proton's statement of financial position as of December 31, 2022, what should be reported as total intangible assets? O P567,000 O P537,000 O P510,000 O P540,000If the value implied by the purchase price of an acquired company exceeds the fair values of identifiable net assets, the excess should be * accounted for as goodwill. allocated to gain on acquisition allocated to reduce current and long- lived assets. O allocated to reduce long-lived assets. RCo iccuod 6 000 shares of its
- 5. How should accounting fees for acquisition be treated? A. Expensed in the period of acquisition B. Capitalized as part of acquisition cost C. Deferred and amortized D. Deferred until the company is disposed of or wound-up 6.The excess of the price paid over the fair value of the net identifiable assets acquired should be recognized as A. Goodwill to be amortized periodically for 20 yearS. B. Expenses immediately C. Goodwill not subject to amortization but subject to impairment D. Goodwill to be amortized for 40 years 7.Under PFRS 3 (Business Combinations) A. Both direct and indirect costs are to be capitalized B. Both direct and indirect costs are to be expensed C. Direct costs are to be capitalized and indirect costs are to be expensed D. Indirect costs are to be capitalized and direct costs are to be expensedBelow is the information relative to an exchange of assets by Bramble Corporation. The exchange lacks commercial substance. Old Equipment Book Value Fair Value Cash Paid Case I $456000 $522000 $81500 Case II $304000 $272500 $42900 Which of the following would be correct for Bramble to record in Case I? Record Equipment at: Record a gain (loss) of: $456000 $(31500) $537500 $0 $603500 $66000 $537500 $660002. What amount of unrealized holding gain should be PROBLEMS Problem 23-1 (IAA) Simple Company reported the following information in relation to land: * The entity purchased land on January 1, 2021 for P500,000 cash. On December 31, 2021, the land has a current replacement cost of P600.000. * On December 31, 2022, the land has a current replacement cost of P750,000. The entity sold the land for P1,000,000 cash on December 31, 2023. On this date, the current replacement cost of the land is P800,000. - What amount of unrealized holding gain should be reported in 2021? a. 600,000 b. 500,000 C. 100,000 d. 0. reported in 2022? a. 250,000 150,000 c. 100,000 d. 0. reported in 2023? a. 300,000 b. 250,000 50,000 d. C. in 2023? a. 500,000 b. 250,000 C. 200,000 d. 150,000 711