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

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

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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