Botiating to acquire Het assets öf Magenta Company. Purple is willing to pay goodwill computed by capitalizing at 25% Magenta's average earnings in excess of the 10% normal rete pased on appraised value of net assets. Magenta's income for the past three years average P3,000,00 Magenta's assets and liabilities are: Book value Assets, excluding goodwill Liabilities P30,000,000 10,500,000 Appraised value P39,000,000 10,500,000 Shat is the amount of goodwill?
Botiating to acquire Het assets öf Magenta Company. Purple is willing to pay goodwill computed by capitalizing at 25% Magenta's average earnings in excess of the 10% normal rete pased on appraised value of net assets. Magenta's income for the past three years average P3,000,00 Magenta's assets and liabilities are: Book value Assets, excluding goodwill Liabilities P30,000,000 10,500,000 Appraised value P39,000,000 10,500,000 Shat is the amount of goodwill?
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter14: Statement Of Cash Flows
Section: Chapter Questions
Problem 37E: During 20X1, Craig Company had the following transactions: a. Purchased 300,000 of 10-year bonds...
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