On December 31, 2021, Sleepy Corporation purchased for P40,000,000 cash all of the outstandingordinary shares of another entity when the subsidiary's statement of financial position showed net assetsof P32,000,000. The subsidiary's assets and liabilities had fair value different from the carrying amountas follows:Carrying amount50,000,0005,000,00030,000,000Fair valueProperty, plant and equipment, netOther assets57,500,000Long-term debt28,000,000What amount should be reported as goodwill in the December 31, 2021 consolidated statement offinancial position of the acquirer and its wholly-owned subsidiary?

Goodwill is the amount of the difference between the consideration paid for an acquisition and net…

On December 31, 2021, Sleepy Corporation purchased for P40,000,000 cash all of the outstanding ordinary shares of another entity when the subsidiary's statement of financial position showed net assets of P32,000,000. The subsidiary's assets and liabilities had fair value different from the carrying amount as follows: Property, plant and equipment, net Other assets Carrying amount 50,000,000 5,000,000 Fair value 57,500,000 Long-term debt 30,000,000 28,000,000 What amount should be reported as goodwill in the December 31, 2021 consolidated statement of financial position of the acquirer and its wholly-owned subsidiary?

On December 31, 2021, Sleepy Corporation purchased for P40,000,000 cash all of the outstanding ordinary shares of another entity when the subsidiary's statement of financial position showed net assets of P32,000,000. The subsidiary's assets and liabilities had fair value different from the carrying amount as follows: Property, plant and equipment, net Other assets Carrying amount 50,000,000 5,000,000 Fair value 57,500,000 Long-term debt 30,000,000 28,000,000 What amount should be reported as goodwill in the December 31, 2021 consolidated statement of financial position of the acquirer and its wholly-owned subsidiary?

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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