on for the business combination, ABC Co. incurred transaction costs amounting to ₱400,000 for legal, accounting, and consultancy fees. If ABC Co. paid ₱6,000,000 cash as consideration for the assets and liabilities of ABC, Inc., how much is the goodwill on the business combination? USE PROPER ACCOUNTING FORM.
on for the business combination, ABC Co. incurred transaction costs amounting to ₱400,000 for legal, accounting, and consultancy fees. If ABC Co. paid ₱6,000,000 cash as consideration for the assets and liabilities of ABC, Inc., how much is the goodwill on the business combination? USE PROPER ACCOUNTING FORM.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On January 1, 2021, ABC Company acquired all of the assets and assumed all of the liabilities of XYZ, Inc. As of this date, the carrying amounts and fair values of the assets and liabilities of XYZ acquired by ABC are shown below: (see image) On the negotiation for the business combination, ABC Co. incurred transaction costs amounting to ₱400,000 for legal, accounting, and consultancy fees. If ABC Co. paid ₱6,000,000 cash as consideration for the assets and liabilities of ABC, Inc., how much is the
USE PROPER ACCOUNTING FORM.
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