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FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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![Condensed statements of financial position of Care Corp and Charm Corp as of December 2021 are as follows:
Care
Current Assets 43,750
Noncurrent Assets 181,250
Liabilities 16,250
Common Stock, P20 par 137,500
APIC 8,750
Retained Earnings 62,500
Charm
Current Assets 16,250
Noncurrent Assets 106,250
Liabilities 8,750
Common Stock, P20 par 75,000
APIC 6,250
Retained Earnings 32,500
On January 1, 2022 Care Corp issued 8,750 shares with a market value of P25/share for the assets and liabilities of Charm Corp. The book values reflects the
fair value of the assets and liabilities, except that non current assets of Charm have a temporary appraisal value of 157,500 and the noncurrent assets of Care
Corp is overstated by 7,500. Contingent consideration, which is determinable, is equal to 3,750. Care also paid for the share issuance cost of 8,500 and other
acquisition related cost of 4,750. On March 1, the contingent consideration has a determinable amount of 5,000 and on the same date the provisional fair
value of the noncurrent assets of Charm increased by 2,250.
17. What is the goodwill at the end of 2022?
Select the correct response:](https://content.bartleby.com/qna-images/question/9cfd3b15-2055-4749-ad12-aca58088fb43/332aa779-62a4-465b-adfb-83449df87f5d/3uqqb7g_thumbnail.jpeg)
Transcribed Image Text:Condensed statements of financial position of Care Corp and Charm Corp as of December 2021 are as follows:
Care
Current Assets 43,750
Noncurrent Assets 181,250
Liabilities 16,250
Common Stock, P20 par 137,500
APIC 8,750
Retained Earnings 62,500
Charm
Current Assets 16,250
Noncurrent Assets 106,250
Liabilities 8,750
Common Stock, P20 par 75,000
APIC 6,250
Retained Earnings 32,500
On January 1, 2022 Care Corp issued 8,750 shares with a market value of P25/share for the assets and liabilities of Charm Corp. The book values reflects the
fair value of the assets and liabilities, except that non current assets of Charm have a temporary appraisal value of 157,500 and the noncurrent assets of Care
Corp is overstated by 7,500. Contingent consideration, which is determinable, is equal to 3,750. Care also paid for the share issuance cost of 8,500 and other
acquisition related cost of 4,750. On March 1, the contingent consideration has a determinable amount of 5,000 and on the same date the provisional fair
value of the noncurrent assets of Charm increased by 2,250.
17. What is the goodwill at the end of 2022?
Select the correct response:
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