RGW Industries purchased the net assets of SP Company for P1,300,000. A schedule of the net assets of SP Company, as recorded on SP Company's books at the time of the acquisition, is as follows: Assets Cash Receivable Inventory Land, buildings, and equipment (net) Total assets Liabilities Current liabilities Long-term debt Inventory Land, building and equipment Patent Purchased in-process research and development P31,000 250,000 302,000 350,000 P933,000 Total liabilities P275,000 Net assets (book value) P658,000 The following schedule shows the differences between the recorded costs and market values of the assets of SP Company at the date of the acquisition: Cost P90,000 185,000 P302,000 350,000 0 0 Existing workforce Totals P652,000 Liabilities P275,000 Determine the amount of goodwill to be recognized on the acquisition? a. P642,000 c. P74,000 b. P464,000 d. P164,000 0 Market P400,000 390,000 40,000 300,000 90,000 P1,220,000 P275,000
RGW Industries purchased the net assets of SP Company for P1,300,000. A schedule of the net assets of SP Company, as recorded on SP Company's books at the time of the acquisition, is as follows: Assets Cash Receivable Inventory Land, buildings, and equipment (net) Total assets Liabilities Current liabilities Long-term debt Inventory Land, building and equipment Patent Purchased in-process research and development P31,000 250,000 302,000 350,000 P933,000 Total liabilities P275,000 Net assets (book value) P658,000 The following schedule shows the differences between the recorded costs and market values of the assets of SP Company at the date of the acquisition: Cost P90,000 185,000 P302,000 350,000 0 0 Existing workforce Totals P652,000 Liabilities P275,000 Determine the amount of goodwill to be recognized on the acquisition? a. P642,000 c. P74,000 b. P464,000 d. P164,000 0 Market P400,000 390,000 40,000 300,000 90,000 P1,220,000 P275,000
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter4: The Balance Sheet And The Statement Of Shareholders' Equity
Section: Chapter Questions
Problem 6RE: Oz Corporation has the following assets at year-end: Patents (net), 26,000; Land, 50,000; Buildings,...
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