BC and XYZ Inc hahow much is the Goodwill arising from this Business Combination? *d the following balance sheets on December 31, 2021: (see image below) On January 1, 2022 ABC purchased all of XYZ Inc’s Common Shares for P40,000 in cash. On that date, XYZ’s Current Assets and Fixed Assets were worth P26,000 and P54,000, respectively. Assuming that Consolidated Financial Statements were prepared on that date, determine the value of the current assets of the combined entity: REQUIRED: 1. How much is the Goodwill arising from this Business Combination? 2. How much is the Shareholder’s Equity section of the Consolidat
BC and XYZ Inc hahow much is the Goodwill arising from this Business Combination? *d the following balance sheets on December 31, 2021: (see image below) On January 1, 2022 ABC purchased all of XYZ Inc’s Common Shares for P40,000 in cash. On that date, XYZ’s Current Assets and Fixed Assets were worth P26,000 and P54,000, respectively. Assuming that Consolidated Financial Statements were prepared on that date, determine the value of the current assets of the combined entity: REQUIRED: 1. How much is the Goodwill arising from this Business Combination? 2. How much is the Shareholder’s Equity section of the Consolidat
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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ABC and XYZ Inc hahow much is the
REQUIRED:
1. How much is the Goodwill arising from this Business Combination?
2. How much is the Shareholder’s Equity section of the Consolidated
Transcribed Image Text:АВС
P 60,000
100,000
P160.000
P 42,000
20,000
90,000
8.000
P160.000
XYZ
P10,000
60,000
PZ0.000
P35,000
12,000
12,000
11,000
P70.000
Current Assets
Fixed Assets (net)
Total Assets
Current Liabilities
Bonds Payable
Common Shares
Retained Eanings
Total Liabilities and Equity
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