On January 1, 2011, Barbidel Company purchased another entity at a cost of P9,000,000. The net assets of the acquiree had a carrying amount of P6,500,000 and fair value of P7,000,000. During the first quarter of 2011, Barbidel spent additional P800,000 of expenditures designed to maintain goodwill. Question: What amount should be reported as goodwill on December 31, 2011?
Q: On December 31 , 2010, Scotch Company decided and classified a group of its assets as held for sale…
A: According to International accounting standard-36 (impairment of assets), it states that the…
Q: The following information concerns the intangible assets of Epstein Corporation: a. On June 30,…
A: 1.Adjusting journal entries for amortization expenses on the intangible assets are as follows:
Q: Armstrong Company acquired Hall Corporation in 2015 and recognized the goodwill of $700,000. Before…
A:
Q: On September 1, 2020, Culver Corporation acquired Splish Brothers Enterprises for a cash payment of…
A: Goodwill' Goodwill is an intangible asset. Goodwill is a reputation of a business which cannot be…
Q: UNO COMPANY purchased equipment for P5,000,000 on January 1, 2013 with a useful life of ten years…
A: Impairment of assets means reducing the book value of assets when carrying amount is more than…
Q: amount should be reported as goodwill
A: Goodwill should be recognized as an intangible asset if money or money's worth has been paid for it.…
Q: On January 1, 2015, Schielanie company acquired a building to be held as investment property in a…
A: On January 1, 2015, Schielanie company acquired a building to be held as investment property in a…
Q: UNDOS COMPANY purchased equipment for P5,000,000 on January 1, 2013 with a useful life of ten years…
A: When an assets cease to be used in regular use and held for sale , then it should be carry at fair…
Q: In January 1, 2015, Fun company purchased Company A for $40,000 in cash and paid immediately. Fun…
A: goodwill recognised on the day of purchase = purchase price- ( assets - liabilities ) = $40,000 - (…
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: 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: Robinson Company purchased Franklin Company at a price of $3,950,000. The fair market value of the…
A: Introduction: Goodwill is an intangible asset related to the purchase of a business by another. When…
Q: In 2014, Alliant Corporation acquired Centerpoint Inc. for $300 million, of which $50 million was…
A:
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: Canberra Enterprises has four divisions. It acquired on of them, Green Products, on January 1, 2011…
A: The carrying value of an asset is the amount of an asset recognized in the balance sheet after…
Q: Anton Company acquired the net assets of Hair Company on January 1, 2015, for $600,000. Using a…
A: 1. Acquisition is a corporate term used to represent purchase of another company and gaining the…
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: In 2016, Alliant Corporation acquired Centerpoint, Inc. for $300 million, of which $50 million was…
A: Goodwill: Goodwill is an intangible asset. It is defined as the excess of cost of an acquired…
Q: Broncos Corporation acquired the following assets associated with a manufacturing facility for a…
A: The question is based no the concept of Financial Accounting. As per the Bartleby guidelines we are…
Q: Gulf Company purchases Arab Company for $900,000 cash on January 2, 2019. The book value of Arab…
A: Goodwill refers to an intangible asset that is usually associated with the acquisition of a company…
Q: Cheyenne Corporation purchased Sage Hill Company 3 years ago and at that time recorded goodwill of…
A: Loss on impairment = Carrying value of goodwill - Fair value of goodwill
Q: Robinson Company purchased Franklin Company at a price of $3,820,000. The fair market value of the…
A: Goodwill is the value of the company over its fair market value. It is a recognition in respect of…
Q: qMLM Inc. acquired net assets of Lizzi Corporation on January 1,2014, for P700,000 in cash. This…
A: Acquisition date is the date on which the asset is purchased and from this date the asset will be…
Q: LMN Company purchased another company on January 1, 2015, resulting in the recording of goodwill of…
A: Computation of depreciation of patent $120,000/10 = $12000
Q: Ayayai Corporation purchased Kingbird Company 3 years ago and at that time recorded goodwill of…
A: Implied value of Goodwill = Fair value of Division- Fair value of Kingbird Division’s net assets…
Q: On January 1, 2020, Faye Company purchased Che Company at a cost that resulted in recognition of…
A: As per IFRS on Intangible Assets and Goodwill, Expenditure associated with the following costs is…
Q: Buchanan Imports purchased McLaren Corporation for $5,000,000 cash when McLaren had net assets worth…
A: 1.
Q: in 2019, Alliant Corporation acquired Centerpoint Inc. for $390 million, of which $60 million was…
A: The impairment loss is decrease in carrying value to present assets at their fair value.
Q: On October 20, 2018, Toffeenut Project Company purchased all the assets and assumed all the…
A: Goodwill is an intangible asset that is recognized during the process of a company buying another…
Q: n January 1, 2018, Paye Company purchased Che Company at a cost that resulted in recognition of…
A: solution : let us analyse the given question first: On January 1, 2018, Paye Company purchased Che…
Q: In 2019, Alliant Corporation acquired Centerpoint Inc. for $300 million, of which $50 million was…
A: Impairment loss refers to a decrease in the company's asset value permanently, usually in fixed and…
Q: On October 1, 2007, JIMMY Acquired the net assets of NEUTRON which resulted to goodwill. When JIMMY…
A: IFRS 3 It stands for International Financial Reporting Standard 3 which states the…
Q: Ajax is reviewing its previous 100% acquisition of Baxter to determine if there is goodwill…
A: Goodwill means market reputation which increase the overall firm’s value. It depends upon various…
Q: valuation of an acquired trademark was incomplete. PHINEAS used $1,000,000 as provisional fair value…
A: IFRS 3 It stands for International Financial Reporting Standard 3 which states the…
Q: On August 1, 2017, Riverbed Corporation acquired Marin, Inc. for a cash payment of $2.30 million. At…
A: Goodwill is an excess amount of purchase consideration over the net value of assets. It is based on…
Q: Tamara Corporation acquired XW Products on January 1, 2020 for $6,400,000, and recorded goodwill of…
A: Impairment of goodwill is defined as the accounting charge which business report when the carrying…
Q: On August 1, 2017, Concord Corporation acquired Skysong, Inc. for a cash payment of $2.10 million.…
A: Net assets value = Fair value of assets - Liabilities = $4326000-2550000 = $1,776,000
Q: Blossom Industries purchased Crane, Inc. on June 30, 2014 and recorded goodwill of $49,600 on this…
A: Yearly Amortization Expense = Cost - Salvage value Useful life
Q: Del Luna Corporation concluded that the fair value of Scarlet Company was P160,000 and paid that…
A: Goodwill is refereed as the reputation of the business which is an intangibles asset that does not…
Q: Del Luna Corporation concluded that the fair value of Scarlet Company was P160,000 and paid that…
A: Goodwill: Goodwill is an intangible asset. It is defined as the excess of cost of an acquired…
Q: Floyd Company purchases Haeger Company for $800,000cash on January 1, 2011. The book value of Haeger…
A: Consolidation: It can be defined as the process of merging or combining various smaller businesses…
Q: Manara Corporation acquired Sama Products on January 1, 2019 for $4,000,000, and recorded goodwill…
A: Intangible assets include: Goodwill Patent Copyright Trademark
Q: On June 30, 2020, Happee Inc. purchased goodwill of P125,000 when it acquired the net assets of Beam…
A: Given, Goodwill acquired along with Net assets = P 125,000 Developed Goodwill costs: Training…
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: In January 1, 2015, Fun company purchased Company A for $40,000 in cash and paid immediately. Fun…
A: Goodwill- It refers to the image of a business, which is an intangible asset but carries some…
Q: In June 2021, Titanic Company acquired a machine in exchanged for a non-monetary asset with a cost…
A: As per IFRS if exchange transaction has commercial substance the asset received is to be recognized…
Q: First Company purchased Second Company for $19,000,000 cash. At the time of purchase, Second…
A: Business combination can be done by way of mergers and acquisitions. n an acquisition, a company…
On January 1, 2011, Barbidel Company purchased another entity at a cost of P9,000,000. The net assets of the acquiree had a carrying amount of P6,500,000 and fair value of P7,000,000. During the first quarter of 2011, Barbidel spent additional P800,000 of expenditures designed to maintain
Step by step
Solved in 2 steps
- Buchanan Imports purchased McLaren Corporation for $5,000,000 cash when McLaren had net assets worth $4,500,000. A. What is the amount of goodwill in this transaction? B. What is Buchanans journal entry to record the purchase of McLaren? C. What journal entry should Buchanan write when the company internally generates additional goodwill in the year following the purchase of McLaren?Farm Fresh Agriculture Company purchased Sunny Side Egg Distribution for $400,000 cash when Sunny Side had net assets worth $390,000. A. What is the amount of goodwill in this transaction? B. What is Farm Fresh Agriculture Companys journal entry to record the purchase of Sunny Side Egg Distribution? C. What journal entry should Farm Fresh Agriculture Company write when the company tests for impairment and determines that goodwill is worth $1,000 in the year following the purchase of Sunny Side?On January 1, 2018, Paye Company purchased Che Company at a cost that resulted in recognition of goodwill of P 2 000 000. During the first quarter of 2018 Paye Company spent an additional P 800 000 on expenditures designed to develop and maintain goodwill by training and hiring new employees. Due to these expenditures, on December 31, 2018, Paye Company Estimated the benefit period of goodwill was indefinite. On December 31, 2018, what amount should be reported as goodwill?
- On January 1, 2018, Paye Company purchased Che Company at a cost that resulted in recognition of goodwill of P2,000,000. During the first quarter of 2018 Paye Company spent an additional P 800 000 on expenditures designed to develop and maintain goodwill by training and hiring new employees. Due to these expenditures, on December 31, 2018, Paye Company Estimated the benefit period of goodwill was indefinite. On December 31, 2018, what amount should be reported as goodwill?On August 1, 2017, Riverbed Corporation acquired Marin, Inc. for a cash payment of $2.30 million. At the time of purchase, Marin’s balance sheet showed assets of $4,422,000, liabilities of $2,622,000, and owners’ equity of $1,800,000. The fair value of Marin’s identifiable assets is estimated to be $4,330,000.Compute the amount of goodwill acquired by Riverbed.Jacky Inc. purchased Manzanita Marine on June 1, 2015 for $25,000,000 and recorded goodwill of $3,100,000 in connection with the purchase. At December 31, 2018, the Manzanita Marine Division had a fair value of $25,400,000. The net assets of Manzanita (including goodwill) had a fair value of $24,900,000 at that time. What amount of loss on impairment of goodwill should Jacky record in 2018?
- On September 1, 2020, Flint Corporation acquired Tamarisk Enterprises for a cash payment of $710,000. At the time of purchase, Tamarisk's balance sheet showed assets of $560,000, liabilities of $240,000, and owners' equity of $320,00O. The fair value of Tamarisk's assets is estimated to be $790,000. Compute the amount of goodwill acquired by Flint. Value assigned to goodwill $In January 1, 2015, Fun company purchased Company A for $40,000 in cash and paid immediately. Fun company assumed all of Company A's assets and assumed Company A's liabilities. company A has assets valued at $60,000 and liabilities valued at $50,000. question: in 2016, fun company must test for the impairment of goodwill. Assume the only goodwill on fun company's books is from the acquisition of company A. Fun company determined that the goodwill has an estimated future cash flow of $25,000 and a fair market value of $20,000. Does fun company have to recognize an impairment? Why or why not? If an impairment must be recognized, compute the impairment loss and record the journal entry.On October 20, 2018, Toffeenut Project Company purchased all the assets and assumed all the liabilities of Starbucks Company for P9,000,000 cash. Starbucks Company's total identifiable asset values were: Book values- P14,000,000; Fair values- P15,000,000. The total liabilities of Starbucks Company were P4,200,000. What is the amount of goodwill that Toffeenut Project Company should be recorded on October 20, 2018?
- In January 1, 2015, Fun company purchased Company A for $40,000 in cash and paid immediately. Fun company assumed all of Company A's assets and assumed Company A's liabilities. company A has assets valued at $60,000 and liabilities valued at $50,000. Question 2: in 2016, fun company must test for the impairment of goodwill. Assume the only goodwill on fun company's books is from the acquisition of company A. Fun company determined that the goodwill has an estimated future cash flow of $25,000 and a fair market value of $20,000. Does fun company have to recognize an impairment? Why or why not? If an impairment must be recognized, compute the impairment loss and record the journal entry. ACTUAL QUESTION: suppose that the estimated future cash flow of goodwill in question #2 is $32,000, while the fair market value continues to be $20,000. Does fun company have to recognize an impairment? Why or why not? If an impairment must be recognized, compute the impairment loss and record the…Robinson Company purchased Franklin Company at a price of $3,820,000. The fair market value of the net assets purchased equals $2,750,000. 1. What is the amount of goodwill that Robinson records at the purchase date? 2. Does Robinson amortize goodwill at year-end? 3. Robinson believes that its employees provide superior customer service, and through their efforts, Robinson believes it has created $1,520,000 of goodwill. Should Robinson Company record this goodwill? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 What is the amount of goodwill that Robinson records at the purchase date? GoodwillRadio Corporation acquired End of the World Products on January 1, 2022 for $4,000,000, and recorded goodwill of $750,000 as a result of that purchase. At December 31, 2010, the End of the World Products Division had a fair value of $4,400,000. The net identifiable assets of the Division (excluding goodwill) had a fair value of $2,700,000 at that time. What amount of loss on impairment of goodwill should Twilight record in