Chapel Charter purchased Durham Co. for $2,160,000 cash. At the time of the purchase, the fair value of Durham Co.'s assets was $2,196,000 and the fair value of its liabilities was $480,000. What is the amount of Goodwill that Chapel Charter will record with respect to this acquisition?
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- On September 1, 20Y8, Vernon Corporation acquired Barlow Enterprises for a cash payment of $2,300,000. At the time of acquisition, Barlow's balance sheet showed assets of $1,800,000, liabilities of $600,000, and owner's equity of $1,200,000. A recent appraisal indicated that the fair value of Barlow's assets is estimated to be $2,100,000. How much goodwill was generated due to this acquisition? What is the net dollar value impact this transaction had on assets? What is the net dollar value impact this transaction had on liabilities? What is the net dollar value impact this transaction had on equity?1. One Corporation concluded that the fair value of Two Company was P160,000 and paid that amount to acquire all of its net assets. Two reported assets with a book value of P120,000 and a fair value of 196,000 and liabilities with a book value and fair value of P46,000 on the date of combination. One also paid P6,000 to a search firm for finder’s fees related to acquisition. What amount will be recorded as goodwill by One Corporation? 26,000 10,000 16,000 0 2. On April 1, 2019, Won Corp. paid cash of P1,240,000 for all the net assets of Shein Company appropriately accounted for as a merger. The recorded assets and liabilities of Shein Company on April 5, 2019 follow: 300,000 420,000 100,000 0 3. On January 1 2021,NOP acquires 100% interest in QRS in exchange for NOP’s 10,000 shares with par value per share of P20 and fair value per share of P200. QRS’s net identifiable assets have fair value of P1,920,000 and a book value of P1,850,000. In addition, NOP agrees to provide an…ABC Corporation purchased XYZ Inc. The latter has the following account balances: The noncurrent assets have a fair value of P4,500,000. ABC paid the owners of XYZ a total purchase price of P4,500,000. How much is the goodwill that ABC should record from this acquisition? *refer to attached photo
- Short Corporation acquired Hathaway, Inc., for $32,620,000. The fair value of all Hathaway's identifiable tangible and intangible assets was $31,800,000. Short will amortize any goodwill over the maximum number of years allowed. What is the annual amortization of goodwill for this acquisition?On October 1, 20X8, FLORIDA INC. acquired 100% of FLOUR CORP. for P280,000. On that date, the carrying values of FLOUR's assets and liabilities were P450,000 and P200,000, respectively. The fair values of FLOUR's assets and liabilities were P550,000 and P200,000, respectively. Additionally, FLOUR had identifiable intangible assets at the time of acquisition with a fair value of P60,000. What is the gain to be reported on FLORIDA's December 31, 20X8 consolidated income statement?Del Luna Corporation concluded that the fair value of Scarlet Company was P160,000 and paid that amount to acquire all of its net assets. Scarlet reported assets with a book value of P120,000 and a fair value of 196,000 and liabilities with a book value and fair value of P46,000 on the date of combination. Del Luna also paid P6,000 to a search firm for finder’s fees related to acquisition. What amount will be recorded as goodwill by Del Luna Corporation? a. 10,000 b. 26,000 c. 16,000 d. 0
- Robinson Company purchased Franklin Company at a price of $2,500,000. The fair market value of thenet assets purchased equals $1,800,000. What is the amount of goodwill that Robinson records at the purchase date?On September 1, 2019, Simon Corporation acquired Jumbo Enterprises for a cash payment of OMR 970,520. At the time of purchase, Simon Corporation’s balance sheet showed assets of OMR 520,000, liabilities of OMR 100,000, and owner’s equity of OMR 420,000. The fair value of Jumbo’s assets is estimated to be OMR 620,000. Compute the amount of goodwill acquired by Simon Corporation.Baine Company purchased Vera Company at a price of $535,000. The fair value of the net assets purchased equals $434,000. Compute the amount of goodwill that Baine records at the purchase date.
- Snowy Ltd acquires Pax Ltd on 1 July 2018 for $5,000,000 being the fair value of the considerationtransferred. At that date, Pax Ltd’s net identifiable assets have a fair value of $4,400,000. Goodwill of$600,000 is therefore the difference between the aggregate of the consideration transferred and the net identifiable assets acquired. The fair value of the net identifiable assets of Pax Limited are determined as follows: ($000) Patent rights Machinery Buildings Land Less: Bank loan Net assets 200 1,000 1,500 2,300 5,000 600 4,400 At the end of the reporting period of 30 June 2019, the management of Snowy Ltd determines that the recoverable amount of the cash-generating unit, which is considered to be Pax Ltd, totals $4,500,000. The carrying amount of the net identifiable assets of Pax Ltd, excluding goodwill, is unchanged and remains at $4,400,000. Required: a) Prepare the journal entry to account for any impairment of goodwill. b) Assume instead that at the end of the…Northern purchased the entire business of Southern including all its assets and liabilities for $658,000. Below is information related to the two companies: Northern Southern Fair value of assets $1,044,000 $798,000 Fair value of liabilities 585,000 315,000 Reported assets 813,000 634,000 Reported liabilities 483,000 258,000 Net Income for the year 59,000 58,000 How much goodwill did Northern pay for acquiring Southern?Snowy Ltd acquires Pax Ltd on 1 July 2018 for $5,000,000 being the fair value of the consideration transferred. At that date, Pax Ltd’s net identifiable assets have a fair value of $4,400,000. Goodwill of $600,000 is therefore the difference between the aggregate of the consideration transferred and the net identifiable assets acquired. The fair value of the net identifiable assets of Pax Limited are determined as follows: ($000) Patent rights:- 200 Machinery:- 1000 Buildings:- 1500 Land:- 2300 Total:- 5000 Less: Bank loan:- 5000-600 = 4400 Net assets:- 4400 At the end of the reporting period of 30 June 2019, the management of Snowy Ltd determines that the recoverable amount of the cash-generating unit, which is considered to be Pax Ltd, totals $4,500,000. The carrying amount of the net identifiable assets of Pax Ltd, excluding goodwill, is unchanged and remains at $4,400,000.…
