On October 1, 2021, ABC acquired the net assets of DEF which resulted to goodwill. When ABC issued its December 31. 2021. financial statements. the valuation of an acquired trademark was incomplete. ABC used P10,000,000 as provisional fair value of trademarks and determined a 5-year amortization life. ABC appropriately disclosed in its December 31, 2021 tinancial statements that the trademark was measured at a provisional amount. On April 30, 2022, the valuation of the trademark was finalized. The fair value of the acquisition date amounted to P212,000,000. Compute fpr the increase or (decrease) of the Goodwill in December 31, 2022

On October 1, 2021, ABC acquired the net assets of DEF which resulted to goodwill. When ABC issued its December 31. 2021. financial statements. the valuation of an acquired trademark was incomplete. ABC used P10,000,000 as provisional fair value of trademarks and determined a 5-year amortization life. ABC appropriately disclosed in its December 31, 2021 tinancial statements that the trademark was measured at a provisional amount. On April 30, 2022, the valuation of the trademark was finalized. The fair value of the acquisition date amounted to P212,000,000. Compute fpr the increase or (decrease) of the Goodwill in December 31, 2022

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter17: Business Tax Credits And The Alternative Minimum Tax

Section: Chapter Questions

Problem 7CE

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