What is the goodwill arising from the acquisition?
Q: Which of the following elements represents a residual claim? A . Asset.
A: residual claim :
Q: Explain how to account for one of these assets: Patents, Trademarks, Goodwill, or Natural…
A: Goodwill is an intangible asset. In layman terms it means reputation. Goodwill is the additional…
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: WHAT IS TECHNICAL OBSOLECENSE OF ASSET
A: The term obsolete refers to the fact that a commodity is no longer in use. Obsolescence refers to…
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: Required: 1. Determine the goodwill or gain on bargain purchase from the above acquisition.
A: When one company acquired 50% of the capital and assets of another company or more is known as…
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: What is Sal's basis at the sale date What is the gain realized by Sal_ What is the gain recognized…
A: As per Bartleby guidelines, in case of multi-part questions, we are only allowed to answer the first…
Q: How can a leased fee estate have a value that could be transferred to another party?
A: The question is based on the concept of valuation of real estate used under lease arrangement.
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: goodwill or (gain on acquisition) arising on consolidation ace price?
A: Fair value of assets = P1,280,000 Less: Fair value of Liabilities = P716,000 Identifiable net…
Q: what are some pros and cons of holding high level of current assets in relation to sale?
A:
Q: why does fair value seeking for an acquisition?
A: Reasonable worth is a term with a few implications in the monetary world. In contributing, it…
Q: what is the definition of Intangible Assets and Goodwill and what are some of the types of…
A: The assets can be classified as fixed assets, current assets and intangible assets.
Q: Which of the following terms describes expenditures made to repurpose an asset?
A: The asset is the future benefit of the company that would have to be sacrificed to pay off the…
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: How do you identify an asset with reference to AASB?
A: Balance sheet: A balance sheet is a statement of assets, liability, and equity. It is prepared after…
Q: What kind of acquisition is it?
A: Mckinsey divided the types of acquisition based on the purpose of such acquisition. 'Acquisition for…
Q: How do you identify intangible assets such as usufruct in modern transactions? Justify with examples
A: In a usufruct, the property rights of usus and fructus are merged. Usus refers to the right to use…
Q: Are Inventories depreciable property? Why?
A: Depreciable property means an asset which is eligible to book depreciation for accounting and tax…
Q: What is an Acquisition costs?
A:
Q: How should goodwill be amortized?
A: Goodwill is an example of intangible assets which has no physical identity.
Q: What amount of goodwill will be reported?
A: Consolidated balance sheet The financial position of a combination of two companies is represented…
Q: Th e initial measurement of goodwill is most likely aff ected by: A . an acquisition’s purchase…
A: Goodwill is an intangible asset which appears under the assets section of the balance sheet. The…
Q: goodwill at the acquisition date
A: The acquisition related costs should be written off as expenses in the books of the acquirer. They…
Q: Compute the goodwill (gain on bargain purchase).
A: The goodwill (gain on bargain purchase) is calculated as follows:Reference:
Q: Determine an asset's depreciable life?
A: A tangible asset is a substantial resource. Tangible resources incorporate fixed resources including…
Q: a. Over what period of time should the cost of a patent acquired by purchase be amortized?b. In…
A: Intangible Assets: These are the long-term assets having no physical existence. However, the…
Q: Formula of goodwill in acquisition date
A: Goodwill is the intangible asset of the organisation and it arises with the purchase of company by…
Q: If a newly acquired asset is ‘held for sale’, the asset or disposal group will be measured at
A: A newly acquired asset is considered as a held for sale to a distributors when a non-current asset…
Q: What is the cost of right of use of asset?
A: Given in the question: Sales Price 20,000,000 Fair Value 18,000,000 Carrying Amount…
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: True or False?
A: Meaning of Right of use asset The right of use asset is recorded by the lessee in the balance…
Q: Under IFRS, the recoverable amount of an asset is
A: Introduction:- Impairment loss arise when the amount by which the carrying amount of an asset…
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 do you mean when you say the depreciable life of an asset is defined?
A: The question explains about the depreciable life of an asset is defined
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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- 1. S acquired 100 percent of F for P275,000. At the date of acquisition, F had the following book and market values: (see image below) What is the amount of the “Investment in F” account on S’s financial records at the acquisition date? 2. What amount of pre-acquisition earnings is eliminated in the acquisition date worksheet elimination?On January 1, 2020, Albay Company acquired a 30% interest in Bataan Company for P2,430,000. On this date, Bataan Company’s shareholders’ equity was P5,000,000. At acquisition date, the carrying amount of Bataan Company’s identifiable net assets approximated their fair values, except for the following: Page 2of 2Excess of Fair Value Over Carrying ValueLandP2,000,000Inventory600,000 Machinery500,000All of the inventories that are undervalued onJanuary 1, 2020 was sold during the year. The machinery is being depreciated using the straight-line method and had a remaining useful life of 4 years onJanuary 1, 2020. For the year 2020, Bataan Company reported profit of P1,520,000 and paid its shareholders dividends of P650,000.Required: What is the carrying amount of the investment in associates onDecember 31, 2020?On October 1, 20X8, FLORIDA INC. acquired 100% of FLOUR CORP. for P280,000. On that date, the carrying values of FLOUR's assets and liabilities were P450,000 and P200,000, respectively. The fair values of FLOUR's assets and liabilities were P550,000 and P200,000, respectively. Additionally, FLOUR had identifiable intangible assets at the time of acquisition with a fair value of P60,000. What is the gain to be reported on FLORIDA's December 31, 20X8 consolidated income statement?
- S acquired 100 percent of F for P275,000. At the date of acquisition, F had the following book and market values: (see image below) What is the amount of the “Investment in F” account on S’s financial records at the acquisition date? What amount of pre-acquisition earnings is eliminated in the acquisition date worksheet elimination? Please answer in good accounting form. Thank you!1. S acquired 100 percent of F for P275,000. At the date of acquisition, F had the following book and market values: (see image below) What is the amount of the “Investment in F” account on S’s financial records at the acquisition date?Snowy Ltd acquires Pax Ltd on 1 July 2018 for $5,000,000 being the fair value of the consideration transferred. At that date, Pax Ltd’s net identifiable assets have a fair value of $4,400,000. Goodwill of $600,000 is therefore thedifference between the aggregate of the consideration transferred and the net identifiable assets acquired.The fair value of the net identifiable assets of Pax Limited are determined as follows:($000)Patent rights200Machinery1,000Buildings1,500Land2,3005,000Less: Bank loan600Net assets4,400At the end of the reporting period of 30 June 2019, the management of Snowy Ltd determines that the recoverable amount of the cash-generating unit, which is considered to be PaxLtd, totals $4,500,000. The carrying amount of the net identifiable assets of Pax Ltd, excluding goodwill, is unchanged and remains at $4,400,000.Required: a)Prepare the journal entry to account for any impairment of goodwill.
- Cars Led acquired 65%, of Trucks Ltd for a cost of 5650,000, when the squty of Trucks LadcOnSistad ofShare Capitalgeneral ReserveRetained Eamings$210.000300,000$80,000All the identifiable assets and liabilities of Cars Ltd were recorded at fair value except forfollowinoVehicles (cost $550.000)EquipmentCarryingAmount$450,000$80,000FairValue$490,000$90,000Required:Prepare the journal entries for the pre-acquisition stage (i.e., Stage 1) of recording the pre-acquisition elimination and Non-Controlling Interest both using the partial goodwill methodSnowy Ltd acquires Pax Ltd on 1 July 2018 for $5,000,000 being the fair value of the considerationtransferred. At that date, Pax Ltd’s net identifiable assets have a fair value of $4,400,000. Goodwill of$600,000 is therefore the difference between the aggregate of the consideration transferred and thenet identifiable assets acquired.The fair value of the net identifiable assets of Pax Limited are determined as follows:($000)Patent rights 200Machinery 1,000Buildings 1,500Land 2,3005,000Less: Bank loan 600Net assets 4,400At the end of the reporting period of 30 June 2019, the management of Snowy Ltd determines thatthe recoverable amount of the cash-generating unit, which is considered to be Pax Ltd, totals$4,500,000. The carrying amount of the net identifiable assets of Pax Ltd, excluding goodwill, isunchanged and remains at $4,400,000.Required:a) Prepare the journal entry to account for any impairment of goodwill. (6 marks)b) Assume instead that at the end of the reporting period the…Snowy Ltd acquires Pax Ltd on 1 July 2018 for $5,000,000 being the fair value of the considerationtransferred. At that date, Pax Ltd’s net identifiable assets have a fair value of $4,400,000. Goodwill of$600,000 is therefore the difference between the aggregate of the consideration transferred and thenet identifiable assets acquired.The fair value of the net identifiable assets of Pax Limited are determined as follows:($000)Patent rights 200Machinery 1,000Buildings 1,500Land 2,3005,000Less: Bank loan 600Net assets 4,400At the end of the reporting period of 30 June 2019, the management of Snowy Ltd determines thatthe recoverable amount of the cash-generating unit, which is considered to be Pax Ltd, totals$4,500,000. The carrying amount of the net identifiable assets of Pax Ltd, excluding goodwill, isunchanged and remains at $4,400,000.Required:a) Prepare the journal entry to account for any impairment of goodwill. ) Assume instead that at the end of the reporting period the management…
- S acquired 100 percent of F for P275,000. At the date of acquisition, F had the following book and market values: (see image below). What amount of pre-acquisition earnings is eliminated in the acquisition date worksheet elimination?1. Nicole Company acquires 75% of Carl John Company (CJC) for P6,000,000. The carrying and fair values of CJC’s net assets at the time of acquisition are P4,500,000 and P4,900,000, respectively.Required:a. Determine the goodwill or gain on bargain purchase from the above acquisition if the non-controlling interest (NCI) is to be valued on a proportionate basis. b. Determine the goodwill or gain on bargain purchase from the above acquisition if the NCI is to be valued on a fair value basis.2. The Statement of Financial Position (SFP) of Arthur Corporation on June 30, 202X is presented below:Current Assets P195,000Land 1,320,000Building 660,000Equipment 525,000Total Assets P2,700,000Liabilities P525,000Ordinary Shares, P5 par 900,00Share Premium 825,000Retained Earnings 450,000Total Equities P2,700,000All the assets and liabilities of Arthur were assumed to approximate their fair values except for land and building. It is estimated that the land has a fair value of P2,100,000, and the…4. An entity acquired an investment in equity instrument for P800,000 on 31 March 2020. The direct acquisition costs incurred were P140,000. On 31 December 2020 the fair value of the instrument was P1,100,000 and the transaction costs that would be incurred on sale were estimated at P120,000. If the investment is designated as FA@FVTOCI, what gain would be recognized in the financial statements for the year ended 31 December 2020? Group of answer choices Nil P40,000 P160,000 P420,000
