5. ABC Company purchased Tara Company for P8, 000,000 cash. Tara Company had total liabilities of P3, 000,000. ABC Company’s assessment of the fair value is obtained when it purchased Tara Company is as follows: Cash 1, 000,000 Inventory 500,000 In-process research and development 5, 000,000 Assembled workforce 1, 200,000 What is the goodwill arising from the acquisition?

Q: Dorel Company is being purchased and has the following balance sheet as of the purchase date: $…

A: Net assets of Dorel = Current assets + Fair value of fixed assets - fair value of current…

Q: On August 1, ABC Corporation acquired 80 percent of XYZ Corporation for P560,000. XYZ Corporation…

A: Introduction Goodwill is considered as an intangible assets that is linked with purchasing of one…

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: 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: Building 2,000,000 Inventory 1,500,000 Trademark 1,000,000 Goodwill 500,000 There is a declining…

A: On impairment of CGU, Out of total impairment loss, the total amount of goodwill allocated to CGU is…

Q: 26. On January 1, 2020, the Acts Co. acquired 100% of the Titus Co. when the fair value of Titus net…

A:

Q: Princess has acquired several other companies. Assume that Princess purchased Krandell for…

A: Answer 1:

Q: Tender, Inc. dominates the snack-food industry with its Tasty-Chip brand Assume that Tender, Inc.…

A: Acquisition: It is acquiring by a company of majority shares of another company and by which the…

Q: On February 3, Heidel Co. paid $750,000, check #2050 to buy the plant assets of Rogers Company that…

A: Percent of total appraised value = (Appraised value of asset / Total Appraised value of all…

Q: RGW Industries purchased the net assets of SP Company for P1,300,000. A schedule of the net assets…

A: In the case of the acquisition of companies, the value of the cost of control (goodwill or capital…

Q: On June 28, Holly Co. acquired 100% of the common stock of Michael Co. The purchase price allocation…

A: WE WILL ONLY AMORTIZE THE INTANGIBLE ASSETS WITH DEFINITE USEFUL LIFE .  IN OUR CASE THOSE ASSETS…

Q: Dorel Company is being purchased and has the following balance sheet as of the purchase date:…

A: Net assets of Dorel = Current assets + Fair value of fixed assets - fair value of current…

Q: Waters Corporation purchased Johnson Company 3 years ago and at that time recorded goodwill of…

A: Goodwill: Goodwill is an intangible asset. Goodwill is a reputation of a business which cannot be…

Q: Assume El Dorado Inc. buys a competitor’s assets for $900,000. Of the $900,000 acquisition price,…

A: As per section 197 of intangible assets, the amortization on intangible assets should be applied…

Q: Leni Co. acquired all of BBM Co's assets and liabilities on October 2, 2021. BBM reported assets…

A:

Q: MNC Corporation purchased all of the outstanding stock of Caldwell Inc., paying $2,700,000 cash.…

A: When the net assets acquired are less than the amount paid for it then the difference is treated as…

Q: On January 1, 2024, Jackson purchased ABC Company for $900,000. At the time, ABC Company had assets…

A: In case of analysis of valency it is important to understand the assets value and liabilities value…

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: The fair value of plant and Machinery was, however OMR 200,000. The company will incur OMR 50,000 of…

A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…

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: Perry Corporation acquired land, buildings, and equipment from a bankrupt company at a lump-sum…

A: lumpsum price including                                                       appraisal cost  is  $…

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: 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: Perkins has acquired several other companies. Assume that Perkins purchased Kettle for $11,000,000…

A: Introduction: Journal: Recording of a business transactions in a chronological order. First step in…

Q: On January 1, 2011, Barbidel Company purchased another entity at a cost of P9,000,000. The net…

A: Amount of Goodwill on January 1, 2011 = Purchase costs - fair value of net assets = P9,000,000 -…

Q: Buchanan Imports purchased McLaren Corporation for $5,000,000 cash when McLaren had net assets worth…

A: 1.

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: Geet Marketing is acquiring Tusk Co. for $565,000 in cash. Tusk has fixed assets with a book value…

A: Goodwill is the difference of amount paid for acquiring the company and the net assets acquired.

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: Purple Corp. purchased all of the listed assets and liabilities of Sudden Corp. for $1,600,000. The…

A: Goodwill: Goodwill is an intangible asset. It is defined as the excess of cost of an acquired…

Q: GALING Co. acquired a building on March 1, 2021. The costs related to the acquisition are as…

A: Cost of the building = Purchase price + Options + Repairs - Options incurred on a building which is…

Q: Pro-tech Software acquired all of the outstanding stock of Reliable Software for $14 million. The…

A: The goodwill is the amount paid for the good image of the acquired business. The amount of goodwill…

Q: The Wally Corporation acquired land, buildings, and equipment from a bankrupt company at a lump-sum…

A: Land           60,000 Building        200,000 Equipment        140,000 Total Assets Value…

Q: ABC Co. is acquiring XYZ Inc. XYZ has the following intangible assets:   Customer list with an…

A: Intangible assets: These are the long-term assets which are not physical in nature, but possess…

Q: Iris Company purchased another entity for P8,000,000 cash. The assets and liabilities of the acquire…

A: Calculation of fair value of net identifiable assets : Particulars Amount Cash  P1,000,000…

Q: 1. On July 1, 2010, Jablonski Products purchased the net assets of Duquesne Industries for $285,000…

A: It is pertinent to note that if the purchase consideration is more than the value of net assets…

Q: On January 1, 20X1, XYZ, Inc. purchased 70% of Set Corporation for $469,000. On that date the book…

A: Income from subsidiary in net income: Purchased 70 % of set corporation. Net income of $ 100000

Q: Perkins has acquired several other companies. Assume that Perkins purchased Kettle for $11,000,000…

A: Solution:- a)Computation of goodwill as follows under:- The following formula used =Purchase price…

Q: AB Inc, acquired 100% stake in CD Inc. on January 1, 2013. AB paid $564,000 cash for the…

A: Goodwill is the excess value paid by the acquirer over the fair value of net assets to acquire the…

Q: New Harvest Bakery acquired all the outstanding common stock of Red Rock Bakery for $72,800 in cash.…

A: Calculation of fair value of net identifiable assets :                            Current assets =…

Q: 2 The goodwill of Dolly Company was due to the acquisition of Puppy on December 1, 2022. The…

A: Goodwill: Goodwill is an intangible asset when one organization procures another. It incorporates…

Q: Cozzi Company is being purchased and has the following balance sheet as of the purchase date:…

A: Goodwill is an intangible asset that accounts for the excess purchase price of another company.…

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 fair…

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: TCO C) Floyd Company purchases Haeger Company for $800,000cash on January 1, 2011. The book value of…

A: Consolidation: It can be defined as the process of merging or combining various smaller businesses…