XYZ Co had the following accounts at the time it was acquired by ABC Inc (see image below). ABC paid P1,400,000 for the net assets of XYZ. It was determined that the fair market value of inventories and PPE were P133,000 and P900,000 respectively. There is an assumed contingent liability arising from past events with a fair value amounting to P10,000 and such amount is considered a reliable measurement. Compute for a) Cost of Acquisition and b) goodwill or gain from acquisition (two answers) Cash. P. 36,000 .......
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- XYZ Co had the following accounts at the time it was acquired by ABC Inc (see image below). ABC paid P1,400,000 for the net assets of XYZ. It was determined that the fair market value of inventories and PPE were P133,000 and P900,000 respectively. There is an assumed contingent liability arising from past events with a fair value amounting to P10,000 and such amount is considered a reliable measurement. Compute for a) Cost of Acquisition and b) goodwill or gain from acquisition (two answers)XYZ Co had the following accounts at the time it was acquired by ABC Inc (see image below). ABC paid P1,400,000 for the net assets of XYZ. It was determined that the fair market value of inventories and PPE were P133,000 and P900,000 respectively. There is an assumed contingent liability arising from past events with a fair value amounting to P10,000 and such amount is considered a reliable measurement. RQUIRED: a) Cost of Acquisition b) goodwill or gain from acquisitionXYZ Co had the following accounts at the time it was acquired by ABC Inc (see image below). ABC paid P1,400,000 for the net assets of XYZ. It was determined that the fair market value of inventories and PPE were P133,000 and P900,000 respectively. There is an assumed contingent liability arising from past events with a fair value amounting to P10,000 and such amount is considered a reliable measurement. Compute for: a) Cost of Acquisition b) Good will or Gain from acquisition
- The VV Company had these accounts at the time it was acquired by Bush Co.: Cash - P36,000; Accounts receivable - P457,000; Inventories - P120,000; Plant, property, and equipment - P696,400; and Accounts payable - P350,800. Bush Co. paid P1,400,000 for net assets of VV Company. It was determined that fair market values of inventories and plant, property, and equipment were P133,000 and P900,000, respectively. An assumed contingent liability arising from past events with a fair value amounting to P10,000 and such amount is considered a reliable measurement. Bush is the lessee of VV in an operating lease that is favorable for an amount of P50,000. In the books of Bush Co., this transaction resulted in: A. Goodwill recorded at P184,800 B. Goodwill is zero C. Goodwill recorded at P284,800 D. Goodwill recorded at P234,800On August 1, 20x1, German Corp. acquired all the identifiable assets and assumed the liabilities of Marasigan Corp. by paying cash of P6,000,00O. Marasigan Corp assets and liabilities have a book values of P7,000,000 and P2,200,000, respectively. The book value of assets and liabilities of Marasigan Corp. is equal to its fair value, except for inventory which is overvalued by P50,000; undervalued building of P400,000; and undervalued accounts payable of P20,000. German Corp. also paid general and administrative cost of P5,000; finder's fee of P6,000 and accountants fee of P25,00O. What is the total amount of goodwill after business combination?Ham Co. changed its business model in 20x2. On Jan. 1, 20x3 (reclassification date), a debt-type financial asset has a carrying amount of P200,000 and fair value of P240,000. Requirements: Provide the entry (entries) on reclassification date assuming the financial asset is reclassified from: d. FVOCI to Amortized cost (the cumulative balance of gains and losses previously recognized in OCI is P10,000). e. FVPL to FVOCI f. FVOCI to FVPL (the cumulative balance of gains and losses previously recognized in OCI is P10,000)
- INSOLVENT Corp. had the following data ascertained before liquidation: Total book value of the assets were P250,000. The book value of the inventories, P80,000 had an excess in the amount of P26,000 over its estimated fair value. The equipment’s estimated fair value had an excess in the amount of P2,500 over its book value of P120,000. Included in the book value of the assets was prepaid expenses of P18,000 which was considered worthless. Other assets not mentioned above have an estimated fair value which was P15,000 less than its book value. Total liabilities were P200,000. The accounts payable in the amount of P70,000 was secured by the inventories while the notes payable in the amount of P95,000 was secured by the equipment. Other liabilities not mentioned includes salaries and taxes in the amount of P12,500. What is the estimated loss on asset realization? A.59,000 B.38,500 C.41,000 D.56,500Asempa Ltd disposed of its entire holding in Daakye Ltd on 30the September 2013 for GH¢ 12 million, on which date the net assets of Daakye Ltd was GH¢9.6 million. It is the policy of measuring NCI at acquisition at proportionate of the fair value of identifiable net asset and no goodwill is impaired as at 30th September 2013. Tax is charged at 25%. Required Calculate the profit or loss on disposal for: (i) Asempa Ltd’s individual financial statements (ii) Consolidated financial statementsCarla Vista Company's balance sheet at December 31, 2026 reports assets of $994000 and liabilities of $778000. All of Carla Vista's assets book values approximate their fair value, except for land, which has a fair value that is $59000 greater than its book value. In addition, notes payable has a fair value that exceeds its book value by $52000. On December 31, 2026, Sunland Corporation paid $332000 to acquire Carla Vista. What amount of goodwill should Sunland record as a result of this purchase? O $57000 O $5000 O $109000 O $116000
- Oriole Company's balance sheet at December 31, 2026 reports assets of $1054000 and liabilities of $722000. All of Oriole's assets' book values approximate their fair value, except for land, which has a fair value that is $62000 greater than its book value. In addition, notes payable has a fair value that exceeds its book value by $52000. On December 31, 2026, Ivanhoe Corporation paid $449000 to acquire Oriole. What amount of goodwill should Ivanhoe record as a result of this purchase? O $3000 O $55000 $117000 $107000At the beginning of the current year, Jason Company acquired non-trading equity instrument for P4,000,000. The equity instrument is irrevocably designated as financial asset at fair value through other comprehensive income. The transaction cost incurred amounted to P700,000. The fair value of the instrument was P5,500,000 at year-end and the transaction cost that would be incurred on the sale of the investment is estimated at P600,000. What amount of gain should be recognized in other comprehensive income for the current year? (A P900,000 B) PO c) P200,000 D P800,000Riddick Co. purchased all of the outstanding stock of Vaako Inc. for $12,000,000. Vaako's book value was $8,500,000. The book values were the same as the fair value with the exception of the following: Patent was undervalued by $2,000,000 and Notes Payable was undervalued by $1,500,000. What is the fair value of Vaako's net assets?