What is the goodwill arising from the acquisition?
Q: CARNATION Company purchased an entity for ₱6,000,000 cash on January 31. The book value and fair…
A: Under the accounting terms, goodwill is defined as intangible asset which arises when the buyer…
Q: ) Prepare the journal entry to account for any impairment of goodwill. b) Assume instead that at…
A: Goodwill: Goodwill is an intangible asset. It is defined as the excess of cost of an acquired…
Q: Robinson Company purchased Franklin Company at a price of $2,500,000. The fair market value of…
A: Given information is: Robinson Company purchased Franklin Company at a price of $2,500,000. The…
Q: Flair Company purchased another entity for P8,000,000 at year-end. The carrying amount of the…
A: Goodwill: Goodwill is an intangible asset acquired when one firm buys another. Goodwill is defined…
Q: Chili's, acquired Thallicious for $32,170,000. The fair value of all Thailicioustangible and…
A: Goodwill is the excess of consideration paid over the fair values of net assets of the acquiring…
Q: Moregoodwill Ltd acquired all the assets and liabilities of Lessgoodwill Ltd on 30 June 2021. The…
A: Goodwill will be calculated by subtracting the fair value of net assets identified from the…
Q: On January 1, 20x1, AAA Co. acquired all of the identifiable assets and assumed all of the…
A: The transaction costs concerning the business combination are charged to the profit and loss account…
Q: ABC Corporation purchased XYZ Inc. The latter has the following account balances: The noncurrent…
A: The term goodwill refers to the excess amount that is paid in acquisition over the fair value of net…
Q: Positivity Enterprises accounted for noncurrent assets using the revaluation model. On September 1,…
A: As per IFRS 5 Non current assets held for sale and discontinued operation The revaluation of asset…
Q: Short Corporation acquired Hathaway, Inc., for $32,620,000. The fair value of all Hathaway's…
A: In 2001, According to the Financial Accounting Standards Board (FASB) declared in Statement 142,…
Q: A Ltd owns an owner-occupied asset that is measured using the revaluation model. The asset’s…
A: As per revaluation model, The asset is carried at a revalued amount, being its fair value at the…
Q: Snowy Ltd acquires Pax Ltd on 1 July 2018 for $5,000,000 being the fair value of the consideration…
A: A) Testing cash-genearting unit for impairment On June 30, 2019 Goodwill Net identifiable assets…
Q: On August 1, Hyde, Inc. exchanged productive assets with Wiggins, Inc. Hyde's asset is referred to…
A: GAAP: Generally Accepted Accounting Principles.
Q: arizona corp. acquired the business data systems for $320,000 cash and assumed all liabilites at the…
A: Goodwill: Goodwill is the good reputation developed by a company over years. This is recorded as an…
Q: Atchison Corporation purchased equipment, a building, and land for $1,000,000 ($200,000 in cash and…
A: This is a basket purchase so in this the fair value is used to allocate the purchase of group…
Q: Fortitude Company purchased an entity for P6,000,000 cash on January 31. The book value and fair…
A: Goodwill is an intangible asset for the firm which can be arise only at the time of purchase of the…
Q: How much should Dolly Company report goodwill as of December 31, 2022?
A: Goodwill is the amount of money which has been paid by the acquiring company in excess of the net…
Q: Larceny Company purchased another entity for P8,000,000. The assets and liabilities of the acquiree…
A: Calculation of fair value of net identifiable assets : Particulars Amount Cash P1,000,000…
Q: On December 31, 2021, an entity has a building with cost of Rp500 million and accumulated…
A: Depreciation means the amount of expenses written off from the value of fixed assets used in…
Q: Kiwi Co. purchased another entity for P5,000,000 cash. The carrying amount and fair value were…
A: Goodwill is an intangible asset of a company which exists due to the company’s customer base, brand…
Q: Gulf Company purchases Arab Company for $900,000 cash on January 2, 2019. The book value of Arab…
A: Goodwill refers to an intangible asset that is usually associated with the acquisition of a company…
Q: Required: a) Prepare the journal entry to account for any impairment of goodwill. b) Assume…
A: Goodwill: Goodwill is an intangible asset. It is defined as the excess of cost of an acquired…
Q: Kiwi Co. purchased another entity for P5,000,000 cash. The carrying amount and fair value were…
A: Consolidation is the merger of two or more entities where one large company acquire share capital of…
Q: On March 1, Al-Quds Co. exchanged productive assets with Birzeit Co. Al-Quds's asset is referred to…
A: The following calculations are done for Al-Quds Company.
Q: On January 1, 2022, J Company acquired an intangible asset from a foreign company. The invoice price…
A: The cost of a separately acquired intangible asset comprise: a) its purchase price, including import…
Q: On December 31, 2021, an entity has a building with cost of Rp500 million and accumulated…
A: As per IAS 16- PPE, A decrease arising as a result of a revaluation should be recognized as an…
Q: of P112,000,000. At the acquisition date, the carrying amount of Manila Pen's net assets was…
A: As fair value is given, goodwill under fair value method:-Goodwill=Consideration paid/%…
Q: An entity purchased an investment property on January 1,2020 at a cost of P4,000,000. The property…
A: As per IAS 40 "Investment property", for recording investment property in books of account, one of…
Q: A Ltd purchases the B Ltd for the following consideration of: Cash : $150 000 Land: carrying…
A: Solution: Fair value of net asset of B Ltd = ($390,000 + $95,000 - $70,000) - $195,000 =$200,000
Q: Buchanan Imports purchased McLaren Corporation for $5,000,000 cash when McLaren had net assets worth…
A: 1.
Q: On January 1, 2021 Major acquired 60% of Minor for a cash payment of $600,000. At date of…
A: Formula: Goodwill = Purchase price - Fair value of Assets
Q: On July 1, 2022 the ABC Company acquired the net assets of XYZ Company for P8,000,000. The recorded…
A: Goodwill means the reputation of the company due to any factor like location , product , price ,…
Q: Arizona Corp. acquired the business Data Systems for $320,000 cash and assumed all liabilities at…
A: a. Calculate the goodwill for Arizona Corporation.
Q: Prepare the journal entry to account for any impairment of goodwill. b) Assume instead that at the…
A:
Q: Lake Incorporated purchased all of the stock of Huron Company, paying $950,000 cash. Lake also…
A: Goodwill: Goodwill is a non-physical intangible asset which is generated when a company is acquired…
Q: Rooky acquired Bamboo on December 31,2020 for P500,000. Bamboo's Liabilities and Capital at that…
A: Goodwill:- It is an intangible asset which one shows in the Balance sheet of the company. These…
Q: Hanley acquired 85% of the ordinary share capital of Craig on 30 December 20X7 for $80,000. At this…
A: When an acquirer corporation buys a target corporation, the amount of goodwill often develops in the…
Q: Snowy Ltd acquires Pax Ltd on 1 July 2018 for $5,000,000 being the fair value of the consideration…
A: Fair value of the consideration transferred = $5,000,000 Fair value of net identifiable assets =…
Q: Having an issue with this problem. Thank you
A: Goodwill is the excess amount paid by the company over the fair value of the company in which…
Q: On December 31, 2021, an entity has a building with cost of Rp500 million and accumulated…
A: Disclaimer: Since you have asked multiple questions we only answer the first question for you to…
Q: Robinson Company purchased Franklin Company at a price of $2,500,000. The fair market value of…
A: Goodwill: It can be defined as an intangible asset that is measured when an existing company is…
Q: Snowy Ltd acquires Pax Ltd on 1 July 2018 for $5,000,000 being the fair value of the consideration…
A:
Q: One Corporation concluded that the fair value of Two Company was P160,000 and paid that amount to…
A: One corporation acquired the assets and liabilities at fair value. The following journal entries…
Q: Carla Vista Corporation acquired End-of-the-World Products on January 1, 2020 for $6150000, and…
A: Given information Recorded goodwill = $1,150,000 fair value = $4,482,000 Carrying value =…
Q: Harold Fishing Gear Company's acquired Sea Breeze Ltd for $450,000. The book values and fair values…
A: Solution: Purchase price of Sea Breeze Ltd = $450,000 Fair value of net assets of Sea Breeze = Fair…
Q: Snowy Ltd acquires Pax Ltd on 1 July 2018 for $5,000,000 being the fair value of the consideration…
A: Goodwill: Goodwill is an intangible asset. It is defined as the excess of cost of an acquired…
Q: Lei Company acquired a financial asset at its market value of P4,800,000. Broker fees of P300,000…
A: 1. The fair value of financial asset would be recognized for $4,800,000.
Q: A Ltd purchases the B Ltd for the following consideration of: Cash : $150 000 Land: carrying amount…
A: Goodwill = Purchase consideration paid + Fair value of non controlling interest - Fair value of net…
CARNATION Company purchased an entity for ₱6,000,000 cash on January 31. The book value and fair value of the assets of the acquired entity as of the date of acquisition follow:
What is the
Step by step
Solved in 2 steps
- Distressed Corporation is undergoing liquidation. Relevant information as of January 1, 20x1 is shown below:ASSETSCarrying AmountNet Realizable ValueCash P250,000 P300,000Accounts Receivable 150,000 355,649Equipment-net 600,000 200,000Land 1,700,000 1,500,000TOTAL ASSETS P2,700,000 P2,355,649LIABILITIESCarrying AmountSettlement AmountAccounts Payable P1,000,000 P1,000,000Salaries Payable 500,000 500,000Notes Payable 800,000 805,234Loan Payable 800,000 800,000TOTAL LIABILITIES P3,100,000 P3,105,234EQUITYShare Capital P1,600,000Retained Earnings (2,000,000)Capital Deficiency (400,000)TOTAL LIABILITIES & EQUITY P2,700,000Additional Information:• Administrative expenses amounting to P180,744 are expected to be incurred during the liquidation process.• The equipment is pledged to the loan payable.• The land is pledged to the notes payable. QUESTIONS: 7. What is the amount paid to unsecured creditors without priority? _____________8. What is the amount paid to partially secured…Distressed Corporation is undergoing liquidation. Relevant information as of January 1, 20x1 is shown below:ASSETSCarrying AmountNet Realizable ValueCash P250,000 P300,000Accounts Receivable 150,000 355,649Equipment-net 600,000 200,000Land 1,700,000 1,500,000TOTAL ASSETS P2,700,000 P2,355,649LIABILITIESCarrying AmountSettlement AmountAccounts Payable P1,000,000 P1,000,000Salaries Payable 500,000 500,000Notes Payable 800,000 805,234Loan Payable 800,000 800,000TOTAL LIABILITIES P3,100,000 P3,105,234EQUITYShare Capital P1,600,000Retained Earnings (2,000,000)Capital Deficiency (400,000)TOTAL LIABILITIES & EQUITY P2,700,000Additional Information:• Administrative expenses amounting to P180,744 are expected to be incurred during the liquidation process.• The equipment is pledged to the loan payable.• The land is pledged to the notes payable. QUESTIONS: 4. How much are the net free assets? _____________5. What is the estimated deficiency? _____________6. What is the estimated recovery…Refer to the following data of OCT2023CPACompany: Assets to be realized 1,375,000Assets acquired 825,000 Liabilities liquidated 1,875,000Assets realized 1,200,000Liabilities not liquidated 1,700,000 Assets not realized 1,375,000Llabilities assumed 1,625,000Llabilities to be liquidated 2,250,000 Supplementary charges 3,125,000 Supplementary credits 2,800,000 Compute the beginning cash balance assuming that the ending balance of ordinary share and retained earnings are P1,200,000 and (400,000), respectively
- Refer to the following data of SG Company: Assets to be realized1,375,000Liabilities liquidated1,875,000Assets acquired825,000Liabilities not liquidated1,700,000Assets realized1,200,000Liabilities to be liquidated2,250,000Assets not realized1,375,000Supplementary charges3,125,000Liabilities assumed1,625,000Supplementary credits2,800,000Compute the beginning cash balance assuming that the ending balance of ordinary share and retained earnings are P1,200,000 and (400,000), respectively.Refer to the following data of SG Company: Assets to be realized1,375,000Liabilities liquidated1,875,000Assets acquired825,000Liabilities not liquidated1,700,000Assets realized1,200,000Liabilities to be liquidated2,250,000Assets not realized1,375,000Supplementary charges3,125,000Liabilities assumed1,625,000Supplementary credits2,800,000Compute the beginning cash balance assuming that the ending balance of ordinary share and retained earnings are P1,200,000 and (400,000), respectively.A. P1,325,000b. P1,475,000c. P2,075,000d. P1,450,000Here are the pre-acquisition balance sheets of POP Company and Sicle Company onDecember 31, 20x5:Pop Co. Sicle Co.Book Value Book Value Market ValuesCurrent assets P 5,000,000 P 2,000,000 P 1,500,000Investments 1,000,000 500,000 500,000Land 10,000,000 5,000,000 6,000,000Buildings (net) 40,000,000 25,000,000 16,000,000Equipment (net) 25,000,000 10,000,000 2,000,000Total assets P 81,000,000 P 42,500,000Current liabilities P 4,000,000 P 1,500,000 1,500,000Long-term liabilities 20,000,000 10,000,000 12,000,000Common stocks, P10par 5,000,000 1,000,000Additional paid-incapital 40,000,000 20,000,000Retained earnings 12,000,000 10,000,000Total liabilities &equity P 81,000,000 P 42,500,000In addition to the above Sicle Co. has identifiable tangibles with a fair value of P5,000,000not recognize on its book but appropriately capitalize by Pop.On January 1, 20x6 Pop issues 400,000 shares of its stock, with a par value of P10/share anda market value of 100/share, to acquire Sicle Company’s…
- Distressed Corporation is undergoing liquidation. Relevant information as of January 1, 20x1 is shown below:ASSETSCarryingAmountNet RealizableValueCash P250,000 P300,000Accounts Receivable 150,000 355,649Equipment-net 600,000 200,000Land 1,700,000 1,500,000TOTAL ASSETS P2,700,000 P2,355,649LIABILITIESCarryingAmountSettlementAmountAccounts Payable P1,000,000 P1,000,000Salaries Payable 500,000 500,000Notes Payable 800,000 805,234Loan Payable 800,000 800,000TOTAL LIABILITIES P3,100,000 P3,105,234EQUITYShare Capital P1,600,000Retained Earnings (2,000,000)Capital Deficiency (400,000)TOTAL LIABILITIES & EQUITY P2,700,000Additional Information:• Administrative expenses amounting to P180,744 are expected to be incurred during the liquidationprocess.• The equipment is pledged to the loan payable.• The land is pledged to the notes payable.QUESTIONS:1. What is the amount paid to unsecured creditors without priority? 2. What is the amount paid to partially secured creditors?Distressed Corporation is undergoing liquidation. Relevant information as of January 1, 20x1 is shown below:ASSETSCarryingAmountNet RealizableValueCash P250,000 P300,000Accounts Receivable 150,000 355,649Equipment-net 600,000 200,000Land 1,700,000 1,500,000TOTAL ASSETS P2,700,000 P2,355,649LIABILITIESCarryingAmountSettlementAmountAccounts Payable P1,000,000 P1,000,000Salaries Payable 500,000 500,000Notes Payable 800,000 805,234Loan Payable 800,000 800,000TOTAL LIABILITIES P3,100,000 P3,105,234EQUITYShare Capital P1,600,000Retained Earnings (2,000,000)Capital Deficiency (400,000)TOTAL LIABILITIES & EQUITY P2,700,000Additional Information:• Administrative expenses amounting to P180,744 are expected to be incurred during the liquidationprocess.• The equipment is pledged to the loan payable.• The land is pledged to the notes payable.QUESTIONS:1. How much are the total free assets? _____________2. How much are the unsecured liabilities with priority? _____________3. How much are the…1. The following information is from Direct to You Corp.’s (DYC) financial records for its year ended December 31, 2020: Select statement of financial position information: 2020 2019 Investments in financial assets (at fair value through profit or loss [FVPL]) 12,000 10,000 Inventory 575,000 498,000 Property, plant, and equipment (PPE) 1,984,000 1,396,000 Less: accumulated depreciation (650,400) (487,000) Copyright 126,000 135,000 Patents 564,000 417,000 Select statement of comprehensive income information: Depreciation of property, plant, and equipment (334,400) Amortization of patents (65,000) Interest expense (75,000) Impairment loss — copyright (9,000) Gain on sale of PPE 23,000 Additional information: PPE that originally cost $570,000 was sold during the year. 100,000 common shares were issued in 2020 to acquire $450,000 of property, plant, and equipment. DYC is subject to IFRS. What amount of net cash used…
- 60. ABC Company is in a capital deficiency position and is considering the possibility of liquidation. An analysis of the assets and liabilities of the entity is provided: Assets at net realizable value (pledged against liabilities of P150,000) P250,000 Assets at net realizable value (pledged against liabilities of P260,000) 100,000 Assets at net realizable value (not pledged against any liabilities) 160,000 Liabilities with priority 85,000 Unsecured creditors 400,000 Round off the estimated recovery percentage to XX.XX%, if needed. How much is the estimated payment to fully secured creditors?PQ16.05 A company has the following assets: Buildings and Equipment, less accumulated depreciation of $5,000,000 Patents Trademarks Land $25,000,000 2,400,000 10,000,000 12,000,000 Goodwill 2,000,000 Cash 8,000,000 The total amount reported under Property, Plant, and Equipment would be??38. On October 1, 2021, a company declared to its shareholders a property dividend in the form of pieces of equipment with carrying amount of P960,000 (acquired on October 1, 2015 for P2,400,000). The dividends are for distribution on January 31, 2022. The company provided the following estimate of the asset’ fair value: October 1, 2021 P1,050,000 December 31, 2021 1,020,000 January 31, 2022 1,110,000 What amount will be reported in 2021 statement of profit or loss as a result of the foregoing transactions?