What amount of goodwill will be reported?
Q: Internally generated goodwill
A: Internally generated goodwill is goodwill that arises without making payment to acquire it.
Q: What is the pupose of performing impairment test for goodwill
A: Goodwill impairment is an accounting charge that companies record when goodwill's carrying value on…
Q: how do you determine when goodwill will be written off under the impairment rules
A: Goodwill:Goodwill is the good reputation developed by a company over years. This is recorded as an…
Q: impairment testing for goodwill?
A: ABOUT GOODWILL :- Goodwill is an Intengible Assets of the Business . Which shows the Reputation of…
Q: Assuming the use of full goodwill approach, compute for the goodwill.
A:
Q: How do you view goodwill on the balance sheet - specifically, if certain levels of it would cause…
A: 1.) I see the goodwill on the balance sheet as synergies , which was estimated at the time of the…
Q: Explain the impairment of goodwill, in general
A: Corporate finance is referred as the decision of the firm to take capital investments and other…
Q: what is accounting for goodwill and what are its implications?
A: Goodwill is an intangible asset. It generally arises from the acquisition of a business. In other…
Q: For which of the following does IFRS for SMEs not provide a simplification of full IFRS?a.…
A: IFRS for SMEs: The majority of companies are non-traded company. These private companies are called…
Q: Distinguish between internally generated goodwill and purchased goodwill and explain how each of…
A: Solution- Goodwill Meaning in Accounting Goodwill arises when a company acquires another entire…
Q: how much is the goodwill?
A: Goodwill is defined as the difference between the purchase price and the fair value of the defined…
Q: How much is the goodwill/gain on bargain purchase?
A: Share capital = P500,000 Additional paid in capital = P300,000 Retained earnings = P500,000 Add:…
Q: Choose the correct.For which of the following does IFRS for SMEs not provide a simplification of…
A:
Q: Define Goodwill.
A: Goodwill refers to the intangible asset which arises when buyer acquires the existing business.
Q: What Is Goodwill And How Is It Accounted For?
A: Definition: Goodwill: Goodwill is a good reputation developed by a company over the years. This is…
Q: During what situations goodwill is essential to be valued?
A: Goodwill is an intangible asset. Value of a brand, Good relations with customers, solid customer…
Q: Give a definition of "Goodwill". Give two examples.
A: The value that a person or company builds up over a time in the form of reputation with the aim to…
Q: Define goodwill impairments.
A: Goodwill impairment is an accounting charge that companies record when goodwill's carrying value on…
Q: Brand recognition is an example of O a. Intangible asset O b. Expenses O C. Tangible asset O d.…
A: Brand recognition is situation when the customers can easily identify the products of particular…
Q: What is goodwill and how is it measured?
A: Intangible Assets: Intangible assets are the long-term assets having no physical existence. However,…
Q: Is goodwill a long-lived asset?
A: Goodwill is known as asset that includes company image. It is an intangible assets which do not…
Q: What does the asset turnover ratio measure, and how is it calculated?
A: Profitability ratios: In general, financial ratios are used to evaluate capabilities, profitability,…
Q: In what circumstances would goodwill be long-lived or short-lived?
A: Goodwill is a part of assets that is reported on the balance sheet. It is an intangible asset (that…
Q: Internally generated goodwill reported at financial position at cost O True O False
A: Goodwill- Internally Generated Goodwill An intangible asset refers to an asset that is not present…
Q: Describe the procedures for conducting a goodwill impairment test.
A: Goodwill: Goodwill is an intangible asset. It is defined as the excess of cost of an acquired…
Q: How should goodwill be amortized?
A: Goodwill is an example of intangible assets which has no physical identity.
Q: COMPUTE THE GOODWILL.
A: Step 1 Since as per given case, the acquirer has acquired all assets and liabilities or acquired…
Q: What is the amount of Goodwill
A: Goodwill/Gain on Bargain purchase: Purchase consideration/Investment Add: Non controlling Interest…
Q: goodwill amortization expensef
A: Goodwill amortization expense =Goodwill recorded/Useful life in years * Part of remaining months in…
Q: Compute the goodwill (gain on bargain purchase).
A: The goodwill (gain on bargain purchase) is calculated as follows:Reference:
Q: Assuming the use of full-goodwill approach, compute for the goodwill.
A: Particulars Parent Share (72%) Minority Share (28%) Total Value (100%) Purchase Price…
Q: What is the goodwill arising from the acquisition?
A: A business combination occurs when an entity acquires control over an organization. Asset purchases…
Q: Explain the accounting issues for recording goodwill.
A: Definition: Goodwill: In terms of accounting, goodwill may be defined as an intangible asset that…
Q: can goodwill be amoritized?
A: Goodwill: Goodwill is an intangible asset to the company. However, goodwill is recorded in the books…
Q: Compute for the goodwill.
A: Purchase consideration: Fair value of the equity investment + Purchase price paid for acquiring…
Q: What is goodwill?
A: Before acquiring a business, the vendor evaluates the business on various parameters. Goodwill is…
Q: COMPUTE FOR THE GOODWILL.
A: Goodwill is an intangible asset that is related to the takeover of one company by another. In fact,…
Q: What is the nature of a sale on consignment?
A: Consignment is a business sale transaction between a consignor and a consignee. Under consignment…
Q: Explain what is goodwill?
A: Solution:- Introduction:- Goodwill is an intangible asset. Goodwill arises when a company looking…
Q: How can we determine the unit profit of operating an asset?
A: Operating income: Operating income measures the organization’s profitability (includes all incomes…
Q: Explain Amortize Goodwill? Give an example?
A: Amortize Goodwill: Goodwill is an intangible asset amortization of goodwill means a reduction in the…
Q: What is intangible assets, and what is goodwill? definition?
A: Assets are the resources that are owned by the entity for using them in future and to generate…
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- Phone Corporation acquired 70 percent of Smart Corporation’s common stock on December 31, 20X4, for $98,000. At that date, the fair value of the noncontrolling interest was $42,000. Data from the balance sheets of the two companies included the following amounts as of the date of acquisition: Item Phone Corporation Smart Corporation Cash $ 52,300 $ 39,000 Accounts Receivable 99,000 59,000 Inventory 136,000 92,000 Land 66,000 49,000 Buildings & Equipment 417,000 268,000 Less: Accumulated Depreciation (151,000) (73,000) Investment in Smart Corporation 98,000 Total Assets $ 717,300 $ 434,000 Accounts Payable $ 141,500 $ 27,000 Mortgage Payable 300,800 288,000 Common Stock 72,000 40,000 Retained Earnings 203,000 79,000 Total Liabilities & Stockholders’ Equity $ 717,300 $ 434,000 At the date of the business combination, the book values of Smart’s assets and liabilities approximated fair value except for inventory, which had a fair value of…Phone Corporation acquired 70 percent of Smart Corporation’s common stock on December 31, 20X4, for $98,000. At that date, the fair value of the noncontrolling interest was $42,000. Data from the balance sheets of the two companies included the following amounts as of the date of acquisition: Item Phone Corporation Smart Corporation Cash $ 52,300 $ 39,000 Accounts Receivable 99,000 59,000 Inventory 136,000 92,000 Land 66,000 49,000 Buildings & Equipment 417,000 268,000 Less: Accumulated Depreciation (151,000) (73,000) Investment in Smart Corporation 98,000 Total Assets $ 717,300 $ 434,000 Accounts Payable $ 141,500 $ 27,000 Mortgage Payable 300,800 288,000 Common Stock 72,000 40,000 Retained Earnings 203,000 79,000 Total Liabilities & Stockholders’ Equity $ 717,300 $ 434,000 At the date of the business combination, the book values of Smart’s assets and liabilities approximated fair value except for inventory, which had a fair value of…Phone Corporation acquired 70 percent of Smart Corporation’s common stock on December 31, 20X4, for $97,300. At that date, the fair value of the noncontrolling interest was $41,700. Data from the balance sheets of the two companies included the following amounts as of the date of acquisition: Item Phone Corporation Smart Corporation Cash $ 58,300 $ 22,000 Accounts Receivable 109,000 49,000 Inventory 144,000 79,000 Land 73,000 36,000 Buildings & Equipment 426,000 266,000 Less: Accumulated Depreciation (166,000) (75,000) Investment in Smart Corporation 97,300 Total Assets $ 741,600 $ 377,000 Accounts Payable $ 142,500 $ 26,000 Mortgage Payable 331,100 233,000 Common Stock 68,000 39,000 Retained Earnings 200,000 79,000 Total Liabilities & Stockholders’ Equity $ 741,600 $ 377,000 At the date of the business combination, the book values of Smart’s assets and liabilities approximated fair value except for inventory, which had a fair value of…
- Peace Computer Corporation acquired 75 percent of Symbol Software Company’s stock on January 2, 20X3, by issuing bonds with a par value of $85,250 and a fair value of $102,750 in exchange for the shares. Summarized balance sheet data presented for the companies just before the acquisition follow: Peace Computer Corporation Symbol Software Company Book Value Fair Value Book Value Fair Value Cash $ 216,000 $ 216,000 $ 62,000 $ 62,000 Other Assets 406,000 406,000 137,000 137,000 Total Debits $ 622,000 $ 199,000 Current Liabilities $ 82,000 82,000 $ 62,000 62,000 Common Stock 290,000 62,000 Retained Earnings 250,000 75,000 Total Credits $ 622,000 $ 199,000 Required: Prepare a consolidated balance sheet immediately following the acquisition.ABC Corporation acquired 70 percent of XYZ Corporation on August 1 for P420,000. On that date, XYZ Corporation had the following book values and market values. What is the amount of non-controlling interest on the acquisition date consolidated balance sheet? In good accounting form, please. Thank you! <33Paste Corporation acquired 70 percent of Stick Company's stock on January 1, 20X9, for $105,000. At that date, the fair value of the noncontrolling interest was equal to 30 percent of the book value of Stick Company. The companies reported the following stockholders’ equity balances immediately after the acquisition: Paste Corporation Stick Company Common Stock $ 120,000 $ 30,000 Additional Paid-in Capital 230,000 80,000 Retained Earnings 290,000 40,000 Total $ 640,000 $ 150,000 Paste and Stick reported 20X9 operating incomes of $90,000 and $35,000 and dividend payments of $30,000 and $10,000, respectively. Required: Compute the amount reported as net income by each company for 20X9, assuming Paste uses equity-method accounting for its investment in Stick. Compute consolidated net income for 20X9.
- X Corporation acquired 80 percent of Y Corporation’s outstanding capital stock for $430,000 cash. Immediately before the purchase, the balance sheets of both corporations reported the following: XCO Y CO Assets $2,000,000 $750,000 Liabilities $ 750,000 $400,000 Common Stock 1,000,000 310,000 Retained Earnings 250,000 40,000 Liabilities & Stockholders’ Equity $2,000,000 $750,000 At the date of purchase, the fair value of Y assets was $50,000 more than the Book value amounts. In the consolidated balance sheet prepared immediately after the purchase,the non controlling interest should amount to Select one: a. 137,500 b. 215,000 c. 107,500 d. 86,000Pace Corporation acquired 100 percent of Spin Company's common stock on January 1, 20X9. Balance sheet data for the two companies immediately following the acquisition follows: Item PaceCorporation SpinCompany Cash $ 30,000 $ 25,000 Accounts Receivable 80,000 40,000 Inventory 150,000 55,000 Land 65,000 40,000 Buildings and Equipment 260,000 160,000 Less: Accumulated Depreciation (120,000 ) (50,000 ) Investment in Spin Company Stock 150,000 Total Assets $ 615,000 $ 270,000 Accounts Payable $45,000 $33,000 Taxes Payable 20,000 8,000 Bonds Payable 200,000 100,000 Common Stock 50,000 20,000 Retained Earnings 300,000 109,000 Total Liabilities and Stockholders' Equity $ 615,000 $ 270,000 At the date of the business combination, the book values of…Puzzle Corporation acquired 100 percent of the common stock of Solver Company by issuing 10,000 shares of $10 par common stock with a market value of $60 per share. Summarized balance sheet data for the two companies immediately preceding the acquisition are as follows: Puzzle Corporation Solver Corporation Book Value Fair Value Book Value Fair Value Total Assets $ 1,200,000 $ 1,500,000 $ 900,000 $ 1,300,000 Total Liabilities $ 800,000 $ 700,000 $ 600,000 $ 750,000 Total Stockholders Equity 400,000 300,000 $ 1,200,000 $ 900,000 Required: Determine the dollar amounts to be presented in the consolidated balance sheet for (1) total assets, (2) total liabilities, and (3) total stockholders' equity.