On August 1, ABC Corporation acquired 80 percent of XYZ Corporation for P560,000. XYZ Corporation had the following book and market values at acquisition date.what is the goodwill recognized on the acquisition date balance sheet? Book ValueP50,000140,000530,000210,000Market ValueP50,000200,000600,000CashInventoryPlant Assets (net)Cost of Goods SoldDepreciation Expense 60,000Liabilities(230,000)(10,000)(350,000)(430,000)(230,000)Common StockRetained EarningsSales

Fair value of net identifiable assets = Fair value of assets - fair value of liabilities…

Answered: Book Value P50,000 140,000 530,000…

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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On August 1, ABC Corporation acquired 80 percent of XYZ Corporation for P560,000. XYZ Corporation had the following book and market values at acquisition date. what is the goodwill recognized on the acquisition date balance sheet?

Book Value
P50,000
140,000
530,000
210,000
Market Value
P50,000
200,000
600,000
Cash
Inventory
Plant Assets (net)
Cost of Goods Sold
Depreciation Expense 60,000
Liabilities
(230,000)
(10,000)
(350,000)
(430,000)
(230,000)
Common Stock
Retained Earnings
Sales

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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