On January 1, 2011, Barbidel Company purchased another entity at a cost of P9,000,000. The net assets of the acquiree had a carrying amount of P6,500,000 and fair value of P7,000,000. During the first quarter of 2011, Barbidel spent additional P800,000 of expenditures designed to maintain goodwill. Question: What amount should be reported as goodwill on December 31, 2011?
On January 1, 2011, Barbidel Company purchased another entity at a cost of P9,000,000. The net assets of the acquiree had a carrying amount of P6,500,000 and fair value of P7,000,000. During the first quarter of 2011, Barbidel spent additional P800,000 of expenditures designed to maintain goodwill. Question: What amount should be reported as goodwill on December 31, 2011?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On January 1, 2011, Barbidel Company purchased another entity at a cost of P9,000,000. The net assets of the acquiree had a carrying amount of P6,500,000 and fair value of P7,000,000. During the first quarter of 2011, Barbidel spent additional P800,000 of expenditures designed to maintain
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