PROBLEM VI. P Corporation acquired 80% of the outstanding voting stock of S Company for P4,500,000 on January 1, 2020 and pai P50,000 for direct acquisition related costs. On this date, S Company's stockholders' equity is composed of: Share capital Share premium Retained earnings P2,000,000 1,200,000 1,600,000 The excess of cost over book value of interest acquired is allocated as follows: 10% to undervalued inventory which is a sold during the year, 40% to undervalued plant assets which has a remaining life of 5 years, and the remainder, to goodwil S Company reported net income of P200,000 and paid dividends of P150,000 in 2020. The impairment on goodwill for 202 was reported to be P5,000. 1. Goodwill on December 31, 2020 balance sheet. 2. NCINAS.

PROBLEM VI. P Corporation acquired 80% of the outstanding voting stock of S Company for P4,500,000 on January 1, 2020 and pai P50,000 for direct acquisition related costs. On this date, S Company's stockholders' equity is composed of: Share capital Share premium Retained earnings P2,000,000 1,200,000 1,600,000 The excess of cost over book value of interest acquired is allocated as follows: 10% to undervalued inventory which is a sold during the year, 40% to undervalued plant assets which has a remaining life of 5 years, and the remainder, to goodwil S Company reported net income of P200,000 and paid dividends of P150,000 in 2020. The impairment on goodwill for 202 was reported to be P5,000. 1. Goodwill on December 31, 2020 balance sheet. 2. NCINAS.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter13: Investments And Long-term Receivables

Section: Chapter Questions

Problem 8MC

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