AAA Inc. acquired on January 1, 2016 all the issued and outstanding common shares of BBB Inc. for P320,000 and BBB Inc. is dissolved. On this day, the assets and liabilities of BBB Inc. show: Cash P 30,000 Merchandise inventory 90,000 Plant and equipment 160,000 Goodwill 50,000 Liabilities ( 60,000) Per appraisal, plant and equipment and merchandise inventory were valued at P190,000 and P75,000, respectively. The journal entry in the books of the acquirer would include a debit to Plant and equipment amounting to The amount of goodwill from this transaction is:

AAA Inc. acquired on January 1, 2016 all the issued and outstanding common shares of BBB Inc. for P320,000 and BBB Inc. is dissolved. On this day, the assets and liabilities of BBB Inc. show: Cash P 30,000 Merchandise inventory 90,000 Plant and equipment 160,000 Goodwill 50,000 Liabilities ( 60,000) Per appraisal, plant and equipment and merchandise inventory were valued at P190,000 and P75,000, respectively. The journal entry in the books of the acquirer would include a debit to Plant and equipment amounting to The amount of goodwill from this transaction is:

Auditing: A Risk Based-Approach to Conducting a Quality Audit

10th Edition

ISBN:9781305080577

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter16: Advanced Topics Concerning Complex Auditing Judgments

Section: Chapter Questions

Problem 55RSCQ

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On January 1, 2017, Sparky Co. acquired 80% of the outstanding stock of Panda Co. for P225,000 cash. Relevant information for Panda Co. on this date is as follows: Inventory 120,000 Land 240,000 Goodwill 10,000 Liabilities 30,000 Common Stock, P100 par 240,000 Retained earnings 100,000 At acquisition date, the book values of Panda Co.’s net identifiable assets and liabilities approximated their fair values. What amount shall be assigned to the minority interest on January 1, 2017? Group of answer choices Cannot be determined 66,000 56,250 68,000 PreviousNext
On January 1, 2017, Sparky Co. acquired 80% of the outstanding stock of Panda Co. for P225,000 cash. Relevant information for Panda Co. on this date is as follows: Inventory 120,000 Land 240,000 Goodwill 10,000 Liabilities 30,000 Common Stock, P100 par 240,000 Retained earnings 100,000 At acquisition date, the book values of Panda Co.’s net identifiable assets and liabilities approximated their fair values. How much is the gain on acquisition?
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