What is the carrying amount of the investment in At the date of acquisition, Free Company's net assets had a At the excess of carrying amount. The land was sold during the of the outstanding ordinary shares of Free Company for P5,000,000 cash. Cyber Company accounts for this investment Free Company owned land with a fair value of P1,000,000 in Cybér Company bought 30% by the equity method. carrying amount of P12,000,000. a current year. The remaining difference between the purchase price and the carrying amount of the underlying equity cannot be ttributed to any identifiable tangible or intangible asset. Accordingly, the remaining difference is allocated to goodwill. Free Company reported net income of P6,000,000 and paid -ash dividend of P1,500,000 during the current year. 1. What is the implied goodwill from the acquisition? a. 1,400,000 b. 1,000,000 1,100,000 d. с. What amount should be reported as investment income for the current year? а. 2,100,000 b. 1,950,000 c. 1,500,000 d. 1,800,000 associate at year-end? a. 5,000,000 b. 6,500,000 C. 6,050,000- d. 6,350,000
What is the carrying amount of the investment in At the date of acquisition, Free Company's net assets had a At the excess of carrying amount. The land was sold during the of the outstanding ordinary shares of Free Company for P5,000,000 cash. Cyber Company accounts for this investment Free Company owned land with a fair value of P1,000,000 in Cybér Company bought 30% by the equity method. carrying amount of P12,000,000. a current year. The remaining difference between the purchase price and the carrying amount of the underlying equity cannot be ttributed to any identifiable tangible or intangible asset. Accordingly, the remaining difference is allocated to goodwill. Free Company reported net income of P6,000,000 and paid -ash dividend of P1,500,000 during the current year. 1. What is the implied goodwill from the acquisition? a. 1,400,000 b. 1,000,000 1,100,000 d. с. What amount should be reported as investment income for the current year? а. 2,100,000 b. 1,950,000 c. 1,500,000 d. 1,800,000 associate at year-end? a. 5,000,000 b. 6,500,000 C. 6,050,000- d. 6,350,000
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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Transcribed Image Text:3. What is the carrying amount of the investment in
of the outstanding ordinary shares of Free Company for
P5,000,000 cash. Cyber Company accounts for this investment
At the date of acquisition, Free Company's net assets had a
excess of carrying amount. The land was sold during the
Free Company owned land with a fair value of P1,000,000 in
At the beginning of current year, Cyber Company bought 30%
Problem 17-16 (IAA)
by the equity method.
carrying amount of P12,000,000.
a
current year.
The remaining difference between the purchase price and
ihe carrying amount of the underlying equity cannot be
attributed to any identifiable tangible or intangible asset.
Accordingly, the remaining difference is allocated to
goodwill.
Free Company reported net income of P6,000,000 and paid
cash dividend of P1,500,000 during the current year.
1. What is the implied goodwill from the acquisition?
a. 1,400,000
b. 1,000,000
с. 1,100,000
d.
2. What amount should be reported as investment income
for the current year?
а. 2,100,000
b. 1,950,000
c. 1,500,000
d. 1,800,000
associate at year-end?
a. 5,000,000
b. 6,500,000
c. 6,050,000
d. 6,350,000
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