On July 1, 2019, Parent Company acquired the net assets of Subsidiary Company for a consideration transferred of P32,000,000. At the acquisition date, the carrying amount of Subsidiary's net assets was P20,000,000 and a temporary appraisal of P28,000,000 was attributed to the net assets. At December 31, 2019, a provisional fair value of P26,000,000 was attributed to the net assets. An additional valuation received on March 31, 2020 increased this provisional fair value by P2,000,000 and on June 1, 2020 this fair value was finalized with a decreased by P4,000,000 from the last valuation date. What amount should the surviving company present for goodwill in its separate statement of financial position at December 31, 2020? *
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- On July 1, 2019, Parent Company acquired the net assets of Subsidiary Company for a consideration transferred of P32,000,000. At the acquisition date, the carrying amount of Subsidiary’s net assets was P20,000,000 and a temporary appraisal of P28,000,000 was attributed to the net assets. At December 31, 2019, a provisional fair value of P26,000,000 was attributed to the net assets. An additional valuation received on March 31, 2020 increased this provisional fair value by P2,000,000 and on June 1, 2020 this fair value was finalized with a decreased by P4,000,000 from the last valuation date. What amount should the surviving company present for goodwill in its separate statement of financial position at December 31, 2020?On July 1, 2020, Philip Company acquired the net assets of Shayne Company for a consideration transferred of P32,000,000. At the acquisition date, the carrying amount of Shayne’s net assets was P20,000 and a temporary appraisal of P28,000,000 was attributed to the net assets. At December 31, 2020, a provisional fair value of P27,000,000 was attributed to the net assets. An additional valuation received on March 31, 2021 increased this provisional fair value by P2,000,000 and on May 31, 2021 this fair value was finalized at P30,000,000. Goodwill is tested for impairment on December 31, 2021 and deemed impaired by P200,000. What amount should the surviving company present for goodwill in its separate statement of financial position as of December 31, 2020?Mother Company purchased the net assets of Subsidiary Company on July 1, 2019 for a consideration transfer of P32,000,000. The carrying value of Subsidiary's net assets at the purchase date was P20,000,000, with a temporary appraisal of P28,000,000 assigned to the net assets. The net assets had a preliminary fair value of P26,000,000 as of December 31, 2019. An additional valuation obtained on March 31, 2020 raised this provisional fair value by P2,000,000, and this fair value was confirmed on June 1, 2020, with a drop of P4,000,000 from the previous valuation date. What should the surviving firm include in its separate statement of financial situation as of December 31, 2020?
- 19. On May 01, 2020, Maria Company acquired the net assets of Luisa Company for a consideration transferred of P32,000,000. At the acquisition date, the carrying amount of Luisa's net assets was P20,000,000 & a temporary appraisal of P28,000,000 was attributed to the net assets. At December 31, 2020, a provisional fair value of P26,000,000 was attributed to the net assets. An additional valuation received on March 31, 2021 increased this provisional fair value by P2,000,000 and on June 01, 2021 this fair value was finalized with a decrease by P4,000,000 from the last valuation date. CHAPTER 1: BUSINESS COMBINATION Page | 49 What amount should the surviving company present for goodwill in its separate statement of financial position at December 31, 2021? a. P12,000,000 b. P8,000,000 c. P6,000,000 d. P4,000,000Abba Company accounted for noncurrent assets using the revaluation model.On July 1, 2021, the entity classified an equipment as held for sale. At that date,the carrying amount was P1,900,000 and the balance of the revaluation surpluswas P200,000. On July 1, the fair value was estimated at P1,800,000 and thecost of disposal at P100,000. On December 31, 2021, the fair value wasestimated at P2,000,000 and the cost of disposal is P200,000. At what amountshould the equipment be measured on December 31, 2021?Abba Company accounted for noncurrent assets using the revaluation model.On July 1, 2021, the entity classified an equipment as held for sale. At that date,the carrying amount was P1,900,000 and the balance of the revaluation surpluswas P200,000. On July 1, the fair value was estimated at P1,800,000 and thecost of disposal at P100,000. On December 31, 2021, the fair value wasestimated at P2,000,000 and the cost of disposal is P200,000. What is theamount of impairment loss to be reported for 2021?
- Shak Company acquired a financial instrument for P4,000,000 on March 31, 2020. The financial instrument is classified as financial asset at fair value through other comprehensive income. The direct acquisition cost incurred amounted to P700,000. On December 31, 2020, the fair value of the instrument was P5,500,000 and the transaction costs that would be incurred on the sale of the investment are estimated at P600,000. What gain should be recognized in statement of financial position for the year ended December 31, 20207 Select the correct response 900,000 200,000 800,000NATO Company accounted for noncurrent assets using the revaluation model. On July 1, 2021, the entity classified an equipment as held for sale. At that date, the carrying amount was P1,900,000 and the balance of the revaluation surplus was P200,000. On July 1, the fair value was estimated at P1,800,000 and the cost of disposal at P100,000. On December 31, 2021, the fair value was estimated at P2,000,000 and the cost of disposal is P200,000. What is the amount of impairment loss to be reported for 2021?On January 1, 2021, Parent Co. acquired the identifiable net asset of Subsidiary, Inc.. On this date, the identifiable net assets acquired and liabilities assumed have fair values of P7,680,000 and P4,320,000, respectively. Parent Co. incurred the following acquisition-related costs: legal fees, P48,000, due diligence costs, P480,000; and general and administrative costs of maintaining an internal acquisition, P96,000. As consideration, Parent Co. transferred 9,600 of its own shares with par value and fair value per share of P400 and P500, respectively, to Subsidiary’s former owners. Costs of registering the shares (previously issued and newly issued) amounted to P192,000 (P24,000 pertains to listing fees of previously issued shares). How much is the total amount charged to profit or loss in relation to this transaction?
- On September 1, 2019, Simon Corporation acquired Jumbo Enterprises for a cash payment of OMR 970,520. At the time of purchase, Simon Corporation’s balance sheet showed assets of OMR 520,000, liabilities of OMR 100,000, and owner’s equity of OMR 420,000. The fair value of Jumbo’s assets is estimated to be OMR 620,000. Compute the amount of goodwill acquired by Simon Corporation.Abba Company accounted for noncurrent assets using the revaluation model. On June 30, 2021, the entity classified a land as held for sale. At that date, the carrying amount was P2,900,000 and the balance of the revaluation surplus was P200,000. On June 30, 2021, the fair value was estimated at P3,300,000 and the cost of disposal at P200,000. On December 31, 2021, the fair value was estimated at P3,250,000 and the cost of disposal at P250,000. What total amount should be reported as impairment loss for 2021?On January 1, 2025, Lili Company acquired the identifiable net assets of Jen Inc. On this date, the identifiable assets acquired and liabilities assumed have fair values of P 7,680,000 and P4,320,000 respectively. Lili Co. incurred the following acquisition related costs: legal fees, P48,000; due diligence costs, P48,000; and general and administrative costs of maintaining an internal acquisition, P96,000. As consideration, Lili Co. transferred 9,600 of its own shares with par value and fair value per share of P400 and P500 respectively, too Jen's former owners. Costs of registering the shares (previously issued and newly issued) amounted to P192,000 (P24,000 pertains to listing fees of previously issued shares). How much is the total amount charged to profit or loss in relation to the transaction above?