Solution-What amount should be reported as goodwill

What amount should be reported as goodwill

Assignment Help Accounting Basics

Reference no: EM133188972

Question - On December 31, 2021, JV Company purchased for P4,000,000 cash all of the outstanding ordinary shares of Jinggoy Company when Jinggoy's statement of financial position showed net assets of P3,200,000. Jinggoy's assets and liabilities had fair value different from the carrying amount as follows:

	Carrying amount	Fair value
Property, plant and equipment, net	5,000,000	5,750,000
Other assets	500,000	0
Long-term debt	3,000,000	2,800,000

Required - What amount should be reported as goodwill in the December 31, 2021 consolidated statement of financial position of JV Company and its wholly-owned subsidiary?

Reference no: EM133188972

Questions Cloud

How much is the value of the bonds : The yield to maturity on the bonds is 10% annual interest. There are 25 years to maturity. How much is the value of the bonds

Develop a strategic promotional plan : Develop a 5-page strategic promotional plan that includes the following: 3 new consumer behaviors in health care (e.g., the use of social media to find provider

Consult on information regarding organisational procedures : Identify a reliable source that you could consult on information regarding organisational procedures

What amount should be recognized as loss : On January 1, 2021, Robin Company received a grant of P1,500,000 from the government. What amount should be recognized as loss

What amount should be reported as goodwill : What amount should be reported as goodwill in the December 31, 2021 consolidated statement of financial position of JV Company

Who are the stakeholders in this situation : Jerry Prior, Beeler Corporation's controller, is concerned that net income may be lower this year. Who are the stakeholders in this situation

Will the growth of the internet continue indefinitely : What factors will influence this growth, Some marketers believed that the Internet would be the end to Brands

What is the effect of the june transaction : On June 30, 2007, the equipment was sold for 10,000,000. What is the effect of the June 30, 2007 transaction to the retained earnings

How much foreign taxes will us inc have as a credit : Earl Jones earned $1m of taxable income in the current tax year and paid $300,000 of French income tax. How much foreign taxes will US Inc have as a credit

User Account

All Pages

What amount should be reported as goodwill

Reference no: EM133188972

Reference no: EM133188972

Questions Cloud

Reviews

Write a Review

Accounting Basics Questions & Answers

How much control does fed have over this longer real rate

Coures:- fundamental accounting principles

Accounting problems

Theory of interest - term structure of interest rates

Write a report on internal controls

Prepare the bank reconciliation for company

Cost-benefit analysis

Theory of interest

Liquidity and profitability

What is the expected risk premium on the portfolio

Simple interest and compound interest

Capm and venture capital

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT