On August 1, ABC Corporation acquired 80 percent of XYZ Corporation for P560,000. XYZ Corporation had the following book and market values at acquisition date. In good accounting form, please. Thank you! <33 Book ValueP50,000140,000530,000210,000Market ValueP50,000200,000600,000CashInventoryPlant Assets (net)Cost of Goods SoldDepreciation Expense 60,000Liabilities(230,000)(10,000)(350,000)(430,000)What is the goodwill recognized on the acquisition date balance sheet?(230,000)Common StockRetained EarningsSales

Goodwill on acquisition shows the excess amount paid over the share of net identified assets…

Book Value P50,000 Market Value P50,000 200,000 600,000 Cash Inventory Plant Assets (net) Cost of Goods Sold Depreciation Expense 60,000 Liabilities Common Stock Retained Earnings Sales 140,000 530,000 210,000 (230,000) (10,000) (350,000) (430,000) What is the goodwill recognized on the acquisition date balance sheet? (230,000)

Book Value P50,000 Market Value P50,000 200,000 600,000 Cash Inventory Plant Assets (net) Cost of Goods Sold Depreciation Expense 60,000 Liabilities Common Stock Retained Earnings Sales 140,000 530,000 210,000 (230,000) (10,000) (350,000) (430,000) What is the goodwill recognized on the acquisition date balance sheet? (230,000)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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