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ANEMONE Company engaged your services to compute the goodwill in the purchase of another company which provided the following: Net Income Net Assets P 2,000,000 P 2,500,000 3,900,000 7,800,000 8,700,000 9,000,000 2018 2019 2020 Goodwill is measured by capitalizing excess earnings at 25% with normal return on average net assets at 20%.

ANEMONE Company engaged your services to compute the goodwill in the purchase of another company which provided the following: Net Income Net Assets P 2,000,000 P 2,500,000 3,900,000 7,800,000 8,700,000 9,000,000 2018 2019 2020 Goodwill is measured by capitalizing excess earnings at 25% with normal return on average net assets at 20%.

Financial Accounting: The Impact on Decision Makers
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter8: Operating Assets: Property, Plant, And Equipment, And Intangibles
Section: Chapter Questions
Problem 8.1AP
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ANEMONE Company engaged your services to compute the goodwill in the purchase of another company which provided the following: 

 

 

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ANEMONE Company engaged your services to compute the goodwill in the purchase of another company which provided the following: Net Income Net Assets 2018 2,000,000 P 7,800,000 8,700,000 2019 2,500,000 2020 3,900,000 9,000,000 Goodwill is measured by capitalizing excess earnings at 25% with normal return on average net assets at 20%.
Transcribed Image Text:ANEMONE Company engaged your services to compute the goodwill in the purchase of another company which provided the following: Net Income Net Assets 2018 2,000,000 P 7,800,000 8,700,000 2019 2,500,000 2020 3,900,000 9,000,000 Goodwill is measured by capitalizing excess earnings at 25% with normal return on average net assets at 20%.
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