On December 31, 2021, JV Company purchased for P4,000,000 cash all of the outstanding ordinary shares of Jinggoy Company when Jinggoy's statement of financial position showed net assets of P3,200,000. Jinggoy's assets and liabilities had fair value different from the carrying amount as follows: Carrying amount 5,000,000 500,000 3,000,000 Fair value Property, plant and equipment, net Other assets 5,750,000 Long-term debt 2,800,000 What amount should be reported as goodwill in the December 31, 2021 consolidated statement of financial position of JV Company and its wholly-owned subsidiary?
On December 31, 2021, JV Company purchased for P4,000,000 cash all of the outstanding ordinary shares of Jinggoy Company when Jinggoy's statement of financial position showed net assets of P3,200,000. Jinggoy's assets and liabilities had fair value different from the carrying amount as follows: Carrying amount 5,000,000 500,000 3,000,000 Fair value Property, plant and equipment, net Other assets 5,750,000 Long-term debt 2,800,000 What amount should be reported as goodwill in the December 31, 2021 consolidated statement of financial position of JV Company and its wholly-owned subsidiary?
Auditing: A Risk Based-Approach to Conducting a Quality Audit
10th Edition
ISBN:9781305080577
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Chapter16: Advanced Topics Concerning Complex Auditing Judgments
Section: Chapter Questions
Problem 55RSCQ
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3. JV Company
Transcribed Image Text:On December 31, 2021, JV Company purchased for P4,000,000 cash all of the outstanding ordinary
shares of Jinggoy Company when Jinggoy's statement of financial position showed net assets of
P3,200,000. Jinggoy's assets and liabilities had fair value different from the carrying amount as follows:
Carrying amount
5,000,000
500,000
3,000,000
Fair value
Property, plant and equipment, net
Other assets
5,750,000
Long-term debt
2,800,000
What amount should be reported as goodwill in the December 31, 2021 consolidated statement of
financial position of JV Company and its wholly-owned subsidiary?
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