How much is the adjustment in goodwill

Assignment Help Accounting Basics
Reference no: EM133180610

Question - Parent Company acquires Subsidiary Company on September 1, 2020. Parent seeks an independent valuation for an item of property, plant and equipment acquired in the combination, and the valuation was not complete by the time Parent authorized for issue its financial statements for the year ended December 31, 2020. At the acquisition date, the item of property, plant and equipment had a remaining useful life of five years with no residual value.

In its 2020 annual financial statements, Parent recognized a provisional fair value for the asset of P300,000. Fourteen months after the acquisition date, Parent received the independent valuation, which estimated the asset's acquisition-date fair value as P400,000.

Required - How much is the adjustment in goodwill as a result of the measurement period adjustment during 2021?

Reference no: EM133180610

Questions Cloud

Shared benefits in such alliances : Considering the history between Great Britain and the U.S., and between France and the U.S., do you think there are shared benefits in such alliances?
Calculate the return on investment expected on the new line : Koch has just received a proposal to invest $2,000,000 in a new line of energy drinks. Calculate the return on investment expected on the new line
Summarize the southwood case : Summarize the Southwood case separately in two parts as explained in the case.
Introduction to effective leadership course : "Learning will gauge the learning outcomes of the training to verify if the learners acquired the proper knowledge, skills, and attitude to the learning program
How much is the adjustment in goodwill : Required - How much is the adjustment in goodwill as a result of the measurement period adjustment during 2021
Role of juvenile officers : The issues in Police Strategies center on the role of juvenile officers and the rights of juvenile offenders. Explain your choices in this scenario by addressin
MGT610 Organisational Best Practice Assignment : MGT610 Organisational Best Practice Assignment Help and Solution, Torrens University Australia - Assessment Writing Service
Identify reasons for merger and acquisition failures : In a particular kind of merger where a restaurant like McDonald's would potentially purchase a potato farm. If McDonald's acquires a potato farm
Distinguish between gaas and gaap : Distinguish between GAAS and GAAP. What professional organization establishes GAAS? What professional organization establishes GAAP

Reviews

Write a Review

Accounting Basics Questions & Answers

  Prepare all journal entries required in 2016 and 2017

the New Age Piano obsolete and the patent worthless by December 31, 2017. Prepare all journal entries required in 2016 and 2017

  Compute the cost of goods sold and ending inventory on july

Compute the cost of goods sold and ending inventory on July 31, 2019 using the First in, first out (FIFO) method and Weighted Average cost method

  How much sales revenue does the company need to breakeven

Assume that the Variable Cost of Goods Sold is 50% of Sales, How much sales revenue does the company need to breakeven

  What is the amount of total assets at the end of the year

Assume at the end of year 7 (december 31), Z company reports Total Liabilities of $80,000. What is the amount of Total Assets at the end of the year

  What journal entry would be made on march

What journal entry would be made on March 31 for wages owed to Betty? What journal entry would be made when she is paid on April 7

  Compute the expected valuation of PP Ltd

Compute the expected valuation of PP Ltd, if: The current level of dividend is expected to continue into the foreseeable future

  What was Blossom Cos total dividends for the year

Splish Co. invested $910,000 in Blossom Co. for 25% of its outstanding stock. What was Blossom Cos total dividends for the year

  What is the degrees of freedom

Assume that the populations' variances are not equal, and set population 1 to be the lunch time of American people. What is the degrees of freedom

  Explain how a bill becomes a law

How to influence the development of legislation. Explain how a bill becomes a law, or not, through the federal legislative branch and executive branch

  Discuss the rationale for using the allowance method based

part 1 on july 1 2010 wallace company a calendar-year company sold special-order merchandise on credit and received in

  The reasonable needs of a related corporation

To what extent may a corporation accumulate earnings for the reasonable needs of a related corporation?

  What is the entry to retained earnings on this transaction

A company declared and distributed a 30% stock dividend on 400,000 common shares. What is the entry to retained earnings on this transaction

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd