MC48 On July 16, 2019, Rudy Project Company purchased all the ase cash. Iris Company's total identifiable asset values were: value Book P115,000,000. Iris P100,000,000; Fair market value Company's total liabilities were P52,500,000. What is the amount of goodwill that Rudy Project Company should record on July 16, 2019? PO P7,500,000 P15,000,000 P22,500,000 a. b. C. d.
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The correct answer is letter B. How did they get the 7,500,000 answer?
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- d. P225,000 MC48 On July 16, 2019, Rudy Project Company purchased all the ase cash. Iris Company's total identifiable asset values were: R value P115,000,000. Iris P100,000,000; Fair market value Company's total liabilities were P52,500,000. What is the amount of goodwill that Rudy Project Company should record on July 16, 2019? a. PO b. P7,500,000 P15,000,000 P22,500,000 C. d.Topic: Intangible Assets (Goodwill) Sarrah Company is interested in computing the goodwill to be recognized in the purchase of ABC Company in January 2022. The following information was taken from the records of ABC Company: Net Income Net Assets 2017 360,000 1,600,000 2018 388,000 1,800,000 2019 288,000 1,900,000 2020 380,000 2,000,000 2021 394,000 2,100,000 1,810,000 9,400,000 Goodwill is measured by capitalizing excess earnings at 40% with normal return on average net assets at 10%. What amount should be recorded as acquisition cost of ABC…The goodwill of DD was due to the acquisition of P on December 1, 2022. The carrying amount and fair value of the assets and liabilities of Puppy as of the date of acquisition were as follows: Accounts Carrying Amount Fair Value Cash P50,000 P50,000 Accounts receivable 500,000 500,000 Inventory 1,000,000 1,500,000 Investment property 0 350,000 Property, plant and equipment 2,000,000 3,150,000 Liabilities 2,000,000 2,000,000 The bookkeeper of DD recorded goodwill at the excess of purchase price over the book value of the net assets of P at P1,850,000. How much should DD report goodwill as of December 31, 2022?
- Write down goodwill Goodwill was a result of a combination of activities in 2019. After an analysis, the following information relating to goodwill was determined: Goodwill - $675000 Value in use $603,000 Fair value less cost to sell $580,000 There is no Excel tab for goodwill – you can add a tab to show your calculations. Find if there is any impairment or not. Intangible Assets During 2020, a trademark and a patent were purchased. The intangible assets are amortized on a straight-line method. To test for impairment, the following items were determined regarding the trademark: Value in use $110,000 FV less costs to sell $115,500 In the Excel spreadsheet, see the tab “Intangible Assets” to perform any necessary calculations (I have attached the picture of the excel sheet) Analyze and review the following items and determine the appropriate journal entry. Record the journal entryHw.104. On January 3, Luna Inc. acquired all noncash assets and assumed all liabilities of Saturn Company at a cash purchase price of $960,000. Luna determined that the fair value of the assets acquired in the transaction is $1,120,000 and the fair value of liabilities is $480,000. The book value of the net assets at the purchase date was $600,000. a. Determine the amount of goodwill recorded by Luna upon purchase of Saturn Company. b. Assume that Luna is a private company that elects to amortize goodwill on a straight-line basis over 10 years. Prepare the amortization entry at December 31There are 260,000 common shares issued and outstanding in PC Inc. Champion Incorporated bought 91,000 common shares of PC Inc. on December 31, 2020 for $957,000. This acquisition provided Champion Incorporated with significant influence over PC Inc. On December 31, 2020, PC Inc. reported assets of $4,600,000 and liabilities of $1,932,000 on its balance sheet. The book values of PC Inc.'s assets and liabilities are equal to their fair values, except for depreciable assets. PC Inc.'s depreciable assets have a fair value of $610,000 and a net book value of $558,000. These depreciable assets have a remaining useful life of 8 years. On September 10, 2021, PC Inc. paid a total of $95,000 in dividends to its common shareholders. For the year ended December 31, 2021, PC Inc. generated net income of $326,000. Champion Incorporated follows IFRS.
- On January 1, 2024, Jackson purchased ABC Company for $900,000. At the time, ABC Company had assets with a market value of $320,000 and liabilities with a market value of $100,000. What is the amount of goodwill Jackson should report on January 1, 2024? O $220,000 $480.000 $680,000 O $420,000On September 1, 2020, Blue Corporation acquired Larkspur Enterprises for a cash payment of $790,000. At the time of purchase, Larkspur's balance sheet showed assets of $630,000, liabilities of $250,000, and owners' equity of $380,000. The fair value of Larkspur's assets is estimated to be $820,000. Compute the amount of goodwill acquired by Blue. Value assigned to goodwill 80000Frodo Corp. bought Aardvark Co. in 2021 and appropriately recorded goodwill related to the purchase. On December 31, 2022, Frodo Corp. reports the following information relating to Aardvark Division: Amount $131,000 $393,000 $658,000 How much loss from goodwill impairment should be recognized by Frodo Corp. in 2022? $265,000 $134.000 Item Goodwill Book value of net assets (including goodwill) Fair value $0 $131,000
- Assume that ABC, Inc, acquires a competitor's assets on June 10, 2020. The purchase price was $150,000. Of that amount, $125,000 is allocated to tangible assets and $25,000 is allocated to goodwill (a §197 intangible asset). What is ABC, Inc. amortization deduction for 2020? (Round final answer to the nearest whole number.) a) $25,000. b) $1,667. c) $972. d) $833. e) None of the above.Bramble Company's December 31, 2021 balance sheet reports assets of $13202000 and liabilities of $4286000. The book values of Bramble's assets approximate their fair values, except for land, which has a fair value $608000 greater than its book value. On December 31, 2021, Indigo Corporation paid $11781000 to acquire Bramble. What amount of goodwill should Indigo record as a result of this purchase? O $1649000 O $0 O $2865000 O $2257000Refer to the information for Cox Inc. above. What amount would Cox record as depreciation expense for 2019 if the units-of-production method were used ( Note: Round your answer to the nearest dollar)? a. $179,400 b. $184,000 c. $218,400 d. $224,000