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 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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
The
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?
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education