acquire the net assets of Best Company. Better is willing to pay for goodwill computed by capitalizing at 20% Best' average earnings in excess of the 10% normal return based on appraised value of net assets. The assets and liabilities of Best Company at appraised values are P39,000,000 and P10,500,000 respectively. Best' income for the past three years average P2,950,000. What is the amount of
acquire the net assets of Best Company. Better is willing to pay for goodwill computed by capitalizing at 20% Best' average earnings in excess of the 10% normal return based on appraised value of net assets. The assets and liabilities of Best Company at appraised values are P39,000,000 and P10,500,000 respectively. Best' income for the past three years average P2,950,000. What is the amount of
Chapter10: Cost Recovery On Property: Depreciation, Depletion, And Amortization
Section: Chapter Questions
Problem 62P
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Better Company is negotiating to acquire the net assets of Best Company. Better is willing to pay for
and P10,500,000 respectively. Best' income for the past three years average P2,950,000.
What is the amount of goodwill?
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