purchased Y Company at a cost that resulted In recognition of goodwill at 10 million having an expected benefit period of 10 years. During the first half of 2020, X Company spent an additional 2 million on expenditures designed to maintain goodwill. Due to these expenditures, on December 31, 2020, X Company estimated that the benefit period of goodwill was indefinite.

purchased Y Company at a cost that resulted In recognition of goodwill at 10 million having an expected benefit period of 10 years. During the first half of 2020, X Company spent an additional 2 million on expenditures designed to maintain goodwill. Due to these expenditures, on December 31, 2020, X Company estimated that the benefit period of goodwill was indefinite.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter12: Intangibles

Section: Chapter Questions

Problem 10RE

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On June 30, 2020, Happee Inc. purchased goodwill of P125,000 when it acquired the net assets of Beam Corp. During 2020, Happee incurred additional cost of developing the goodwill, by training Beam employees (P50,000) and hiring additional Beam employees (P25,000). How much should Happee report as goodwill on its December 31, 2020 Financial Position?
On January 1, 2020, Faye Company purchased Che Company at a cost that resulted in recognition of goodwill of 2,000,000. During the first quarter of 2020, Faye Company spent an additional 800,000 on expenditures designed to develop and maintain goodwill by training and hiring new employees. Due to these expenditures, on December 31, 2020, Faye Company estimated that the benefit period of goodwill was indefinite. In the December 31, 2020 statement of financial position, what amount should be reported as goodwill? 800,000 O 2,000,000 1,800,000 1,900,000
On January 1, 2020, Faye Company purchased Che Company at a cost that resulted in recognition of goodwill of 2,000,000. During the first quarter of 2020, Faye Company spent an additional 800,000 on expenditures designed to develop and maintain goodwill by training and hiring new employees. Due to these expenditures, on December 31, 2020, Faye Company estimated that the benefit period of goodwill was indefinite. In the December 31, 2020 how much is recorded as outright expense? 1,800,000 800,000 2,000,000 1,900,000
On January 2, 2019, Tweety Company purchased Sylvester Company at a cost that resulted in recognition of goodwill of P1,000,000, having an expected benefit period of 10 years. During the first quarter of 2019, Tweety spent an additional P400,000 on expenditures designed to maintain goodwill. expenditures, at December 31, 2019, Tweety estimated that the benefit period of goodwill was 20 years. Due to these In its December 31, 2019 statement of financial position, what amount should Tweety Company report as goodwill? Answer: 1,000,000 Give a solution to this answer.
On January 1, 2019, EXO Corp. purchased BTS Inc. at a cost that resulted in recognition of goodwill at P10,000,000 having an expected benefit period of 10 years. During the first half of 2019, EXO Corp. spent an additional P2,000,000 on expenditures designed to maintain goodwill. Due to these expenditures, on December 31, 2019, EXO Corp. estimated that the benefit period of goodwill was indefinite.In its December 31, 2019 statement of financial position, what amount should EXO Corp report as goodwill?
On January 1, 2018, Paye Company purchased Che Company at a cost that resulted in recognition of goodwill of P 2 000 000. During the first quarter of 2018 Paye Company spent an additional P 800 000 on expenditures designed to develop and maintain goodwill by training and hiring new employees. Due to these expenditures, on December 31, 2018, Paye Company Estimated the benefit period of goodwill was indefinite. On December 31, 2018, what amount should be reported as goodwill?
On January 1, 2018, Paye Company purchased Che Company at a cost that resulted in recognition of goodwill of P2,000,000. During the first quarter of 2018 Paye Company spent an additional P 800 000 on expenditures designed to develop and maintain goodwill by training and hiring new employees. Due to these expenditures, on December 31, 2018, Paye Company Estimated the benefit period of goodwill was indefinite. On December 31, 2018, what amount should be reported as goodwill?
5. On January 1, 2020, Blue company purchased X company for P25 Million. At such date, X Company had total assets of P 24,000,000 and total liabilities of P3,000,000. The excess payment was appropriately recognized as goodwill and is expected to have a benefit of 10 years. During the year 2021, Blue spent an additional P1,000,000 on expenditures designed to maintain goodwill. Due to these expenditures, Blue estimated that the benefit period of goodwill had increased an additional 10 years. What amount of goodwill should Blue Company report on December 31, 2021?
On January 1, 2020, Azure Corporation purchased Sparrow Corporation for $20 million. Of the $20 million purchase price, $2 million was allocated to goodwill. What is Azure’s amortization deduction related to the goodwill for 2020? Round your answer to the nearest whole dollar.
Manara Corporation acquired Sama Products on January 1, 2019 for $4,000,000, and recorded goodwill of $750,000 as a result of that purchase. At December 31, 2019, Sama Products had a carrying value of $3,500,000, Also, it is determined that the current recoverable amount value of the Sama division is $2,900,000 at that time. What amount of loss on impairment of goodwill should Manara record in 20197 OA S710,000 OB $600,000 OC S480,000 OD S0
On October 1, 2021, Loving Company approved a formal plan to sell a businesssegment. The sale will occur on April 1, 2022. The segment’s revenue andexpenses for 2021 were P30,000,000 and P32,000,000, respectively. OnDecember 31, 2021, the carrying amount of the assets of the segment wasP10,000,000 and the fair value less costs of disposal was P9,600,000. Theincome tax rate is 25%. What amount should be reported as income/(loss) fromdiscontinued operation for 2021?
In 2019, Alliant Corporation acquired Centerpoint Inc. for $300 million, of which $50 million was allocated to goodwill. At the end of 2021, management has provided the following information for a required goodwill impairment test: Fair value of Centerpoint Inc. $ 220 million Book value of Centerpoint’s net assets (excluding goodwill) 200 million Book value of Centerpoint’s net assets (including goodwill) 250 million 1. Determine the amount of the impairment loss. 2. Determine the amount of the impairment loss assuming that the fair value of Centerpoint is $270 million.