PROBLEM VII On July 1, 2019, Eya Company acquired 700,000 shares of Agas Company at a price of P13 per share. Eya estimated that the price paid include P1.50 premium in order to gain control over Agas. On this date, the fair values of Agas' identifiable assets and liabilities and their carrying values are given below: Fair Value P2,000,000 11,000,000 Book Value Current assets Property, plant and equipment Liabilities Ordinary shares, P5 par Retained earnings P2,000,000 9,000,000 P3,000,000 5,000,000 3,000,000 1. Determine the amount of goodwill.

PROBLEM VII On July 1, 2019, Eya Company acquired 700,000 shares of Agas Company at a price of P13 per share. Eya estimated that the price paid include P1.50 premium in order to gain control over Agas. On this date, the fair values of Agas' identifiable assets and liabilities and their carrying values are given below: Fair Value P2,000,000 11,000,000 Book Value Current assets Property, plant and equipment Liabilities Ordinary shares, P5 par Retained earnings P2,000,000 9,000,000 P3,000,000 5,000,000 3,000,000 1. Determine the amount of goodwill.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter13: Investments And Long-term Receivables

Section: Chapter Questions

Problem 19E

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