6. Tulip Company purchased the net assets of another entity forP2,000,000. On the sate of the transaction, the acquire hadP800,000 of liabilitiesThe assets of the acquiree at fair value were $1,900,000 for currentassets and P1,600,000 for noncurrent assets.What is the amount of gain on bargain purchase?a. P 700,000b. P-700,000c. P 800,000d. P-800,000

>When an entity is acquired, the amount is paid to pay for the net assets acquired.>Net assets…

6. Tulip Company purchased the net assets of another entity for P2,000,000. On the sate of the transaction, the acquire had P800,000 of liabilities The assets of the acquiree at fair value were P1,900,000 for current assets and P1,600,000 for noncurrent assets. What is the amount of gain on bargain purchase? a. P 700,000 b. P-700,000 c. P 800,000 d. P-800,000

6. Tulip Company purchased the net assets of another entity for P2,000,000. On the sate of the transaction, the acquire had P800,000 of liabilities The assets of the acquiree at fair value were P1,900,000 for current assets and P1,600,000 for noncurrent assets. What is the amount of gain on bargain purchase? a. P 700,000 b. P-700,000 c. P 800,000 d. P-800,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Prepare and compute for the CONSOLIDATED TOTAL LIABILITIES at the date of acquisition.
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What is the goodwill arising from the acquisition?
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COMPUTE FOR THE GOODWILL.
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