On January 1, 2020, Blue company purchased X company for P25 Million. At such date, X Company had total assets of P 24,000,000 and total liabilities of P3,000,000. The excess payment was appropriately recognized as goodwill and is expected to have a benefit of 10 years. During the year 2021, Blue spent an additional P1,000,000 on expenditures designed to maintain goodwill. Due to these expenditures, Blue estimated that the benefit period of goodwill had increased an additional 10 years. What amount of goodwill should Blue Company report on December 31, 2021?

SWFT Comprehensive Vol 2020
43rd Edition
ISBN:9780357391723
Author:Maloney
Publisher:Maloney
Chapter8: Depreciation, Cost Recovery, Amortization, And Depletion
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5. On January 1, 2020, Blue company purchased X company for P25 Million. At such date, X Company had total assets of P 24,000,000 and total liabilities of P3,000,000. The excess payment was appropriately recognized as goodwill and is expected to have a benefit of 10 years. During the year 2021, Blue spent an additional P1,000,000 on expenditures designed to maintain goodwill. Due to these expenditures, Blue estimated that the benefit period of goodwill had increased an additional 10 years. What amount of goodwill should Blue Company report on December 31, 2021?
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