On August 1, ABC Corporation acquired 80 percent of XYZ Corporation for P560,000. XYZ Corporation had the following book and market values at acquisition date. * Book Value P50,000 140,000 530,000 210,000 Market Value P50,000 200,000 600,000 Cash Inventory Plant Assets (net) Cost of Goods Sold Depreciation Expense 60,000 Liabilities (230,000) (10,000) (350,000) (430,000) What is the goodwill recognized on the acquisition date balance sheet? (230,000) Common Stock Retained Earnings Sales
On August 1, ABC Corporation acquired 80 percent of XYZ Corporation for P560,000. XYZ Corporation had the following book and market values at acquisition date. * Book Value P50,000 140,000 530,000 210,000 Market Value P50,000 200,000 600,000 Cash Inventory Plant Assets (net) Cost of Goods Sold Depreciation Expense 60,000 Liabilities (230,000) (10,000) (350,000) (430,000) What is the goodwill recognized on the acquisition date balance sheet? (230,000) Common Stock Retained Earnings Sales
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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What is the
![On August 1, ABC Corporation acquired 80 percent of XYZ Corporation for
P560,000. XYZ Corporation had the following book and market values at
acquisition date. *
Book Value
P50,000
140,000
530,000
210,000
Market Value
P50,000
200,000
600,000
Cash
Inventory
Plant Assets (net)
Cost of Goods Sold
Depreciation Expense 60,000
Liabilities
(230,000)
(10,000)
(350,000)
(430,000)
(230,000)
Common Stock
Retained Earnings
Sales
What is the goodwill recognized on the acquisition date balance sheet?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7525674e-099c-45d6-8b05-ad71cd6b6c0a%2F0e8e9e35-e1c1-4571-8f5b-f56ed3455764%2Fa97brps_processed.jpeg&w=3840&q=75)
Transcribed Image Text:On August 1, ABC Corporation acquired 80 percent of XYZ Corporation for
P560,000. XYZ Corporation had the following book and market values at
acquisition date. *
Book Value
P50,000
140,000
530,000
210,000
Market Value
P50,000
200,000
600,000
Cash
Inventory
Plant Assets (net)
Cost of Goods Sold
Depreciation Expense 60,000
Liabilities
(230,000)
(10,000)
(350,000)
(430,000)
(230,000)
Common Stock
Retained Earnings
Sales
What is the goodwill recognized on the acquisition date balance sheet?
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