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8. CARNATION Company purchased an entity for P6,000,000 cash on 2 poi January 31. The book value and fair value of the assets of the acquired entity as of the date of acquisition follow: * Book Value Fair Value Cash 50,000 P 50,000 500,000 1,500,000 250,000 3,000,000 Accounts receivable 500,000 Inventory 1,000,000 Patent Property, plant and equipment 2,000,000 • In addition, the acquired entity had liabilities totaling P2,000,000 at the time of the acquisition. The acquired entity has no other separately identifiable intangible assets. What is the goodwill arising from the acquisition? O P 4,450,000 O P 700,000 O P 2,450,000 O P 2,700,000

8. CARNATION Company purchased an entity for P6,000,000 cash on 2 poi January 31. The book value and fair value of the assets of the acquired entity as of the date of acquisition follow: * Book Value Fair Value Cash 50,000 P 50,000 500,000 1,500,000 250,000 3,000,000 Accounts receivable 500,000 Inventory 1,000,000 Patent Property, plant and equipment 2,000,000 • In addition, the acquired entity had liabilities totaling P2,000,000 at the time of the acquisition. The acquired entity has no other separately identifiable intangible assets. What is the goodwill arising from the acquisition? O P 4,450,000 O P 700,000 O P 2,450,000 O P 2,700,000

Intermediate Accounting: Reporting And Analysis
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
Chapter10: Property, Plant And Equipment: Acquisition And Subsequent Investments
Section: Chapter Questions
Problem 6MC: Ashton Company exchanged a nonmonetary asset with a cost of 30,000 and accumulated depreciation of...
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8. CARNATION Company purchased an entity for P6,000,000 cash on 2 poim January 31. The book value and fair value of the assets of the acquired entity as of the date of acquisition follow: * Book Value Fair Value Cash 50,000 P 500,000 1,000,000 50,000 500,000 1,500,000 250,000 3,000,000 Accounts receivable Inventory Patent Property, plant and equipment 2,000,000 In addition, the acquired entity had liabilities totaling P2,000,000 at the time of the acquisition. The acquired entity has no other separately identifiable intangible assets. What is the goodwill arising from the acquisition? O P 4,450,000 O P 700,000 P 2,450,000 O P 2,700,000
Transcribed Image Text:8. CARNATION Company purchased an entity for P6,000,000 cash on 2 poim January 31. The book value and fair value of the assets of the acquired entity as of the date of acquisition follow: * Book Value Fair Value Cash 50,000 P 500,000 1,000,000 50,000 500,000 1,500,000 250,000 3,000,000 Accounts receivable Inventory Patent Property, plant and equipment 2,000,000 In addition, the acquired entity had liabilities totaling P2,000,000 at the time of the acquisition. The acquired entity has no other separately identifiable intangible assets. What is the goodwill arising from the acquisition? O P 4,450,000 O P 700,000 P 2,450,000 O P 2,700,000
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