Solution-What should be the amount recorded as goodwill

What should be the amount recorded as goodwill

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Q1. On January 1,2020, ABC Co. acquired 70% of DEF Inc. at book value. On December 31,2021 DEF sold a machine to DEF for P112,500. The machine on DEF's books has a book value of P75,000. ABC will use a 10-year life, no salvage value, and straight-line depreciation. For 2021, DEF reports net income of P137,500. Compute the non-controlling interest in net income of subsidiary is?

Q2. The assets and liabilities of ABC were summarized as follows: Cas P66,000; Inventories P198,000; Property and Equipment (net) P396,000 and Liabilities P148,500. On April 1,2021, thw DEF Company acquired the above net asstets of ABC in a transaction properly accounted for as purchase by paying P578,750 cash. Furthermore, it was determined that the inventoried ABC had a market value of P156,750 and the property and equipment of P462,000. What should be the amount recorded as goodwill by DEF as a result of the business combination?

Reference no: EM132973131

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What should be the amount recorded as goodwill

Reference no: EM132973131

Reference no: EM132973131

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