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How much goodwill would recognized in financial statements

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Question - On January 1, 2019 Fried Chicken Company acquired all identifiable net assets of Spaghetti Company when the fair value of Spaghetti's net assets was P114,000,000 and their carrying amount was P120.000,000. The consideration transferred comprised of P200,000.000 in cash at acquisition date plus another P60.000.000 in cash to be transferred 11 months after acquisition date if a specific profit target was met by Spaghetti. At the acquisition date, there was only a low probability of the profit target being met, so the fair value of the additional consideration liability was P10,000.000. How much goodwill would be recognized in the financial statements?

Reference no: EM133118326

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