Solution-What amount should be reported as goodwill

What amount should be reported as goodwill

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

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What amount should be reported as goodwill

Reference no: EM133188972

Reference no: EM133188972

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