On January 1, 2011, Barbidel Company purchased another entity at a cost of P9,000,000. The net assets of the acquiree had a carrying amount of P6,500,000 and fair value of P7,000,000. During the first quarter of 2011, Barbidel spent additional P800,000 of expenditures designed to maintain goodwill. Question: What amount should be reported as goodwill on December 31, 2011?

On January 1, 2011, Barbidel Company purchased another entity at a cost of P9,000,000. The net assets of the acquiree had a carrying amount of P6,500,000 and fair value of P7,000,000. During the first quarter of 2011, Barbidel spent additional P800,000 of expenditures designed to maintain goodwill. Question: What amount should be reported as goodwill on December 31, 2011?

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 11PB: On May 1, 2015, Zoe Inc. purchased Branta Corp. for $15,000,000 in cash. They only received...

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