ABC Corporation purchased a business for P20,000,000 cash. The assets and liabilities of the acquired business at cost are as follows: Assets Cash 2,000,000 Account receivable 2,000,000 Inventory 5,000,000 Property, plant and equipment 8,000,000 Patent 4,000,000 Liabilities Accounts payable 6,000,000 Notes payable 5,000,000 Accrued liabilities 900,000 The PPE has as fair market value of 10,000,000, while the patent has no fair market value. How much is the goodwill? 5 12,900,000 5 12,000,000 ) 10,900,000 5 13.000,000

ABC Corporation purchased a business for P20,000,000 cash. The assets and liabilities of the acquired business at cost are as follows: Assets Cash 2,000,000 Account receivable 2,000,000 Inventory 5,000,000 Property, plant and equipment 8,000,000 Patent 4,000,000 Liabilities Accounts payable 6,000,000 Notes payable 5,000,000 Accrued liabilities 900,000 The PPE has as fair market value of 10,000,000, while the patent has no fair market value. How much is the goodwill? 5 12,900,000 5 12,000,000 ) 10,900,000 5 13.000,000

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter14: Property Transactions: Capital Gains And Losses, § 1231, And Recapture Provisions

Section: Chapter Questions

Problem 32CE

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Similar questions

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