On April 30, 2019, Winona Company purchased for cash 18,000 of the 60,000 voting shares of Chico Company for P650,000. The amount exceeded the underlying equity acquired in the net assets of Chico Company by P150,000. The excess is attributable to undervaluation of Chico Company’s land and equipment by P250,000 and P100,000, respectively. On April 30, 2019, the equipment had a remaining useful life of 5 years. The remaining excess was attributable to goodwill. During the year 2019, Chico Company reported profit of P600,000, of which P120,000 was earned during January through April. Chico Company declared and distributed a dividend of P4.00 per share on June 30, 2019. Market price of Chico Company shares on December 31, 2019, is P40 per share. How much goodwill to be recorded by Chico
On April 30, 2019, Winona Company purchased for cash 18,000 of the 60,000 voting shares of Chico Company for P650,000. The amount exceeded the underlying equity acquired in the net assets of Chico Company by P150,000. The excess is attributable to undervaluation of Chico Company’s land and equipment by P250,000 and P100,000, respectively. On April 30, 2019, the equipment had a remaining useful life of 5 years. The remaining excess was attributable to
How much goodwill to be recorded by Chico?
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