On April 1, 2021, Hans Corporation paid P800,000 for the assets and liabilities of Vans Company. The
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Question:
On April 1, 2021, Hans Corporation paid P800,000 for the assets and liabilities of Vans Company. The book value of the assets and liabilities of Vans Company on April 1,202l, follow: Cash - P80,000, lnventory - 240,000, Plant and equipment (net of accumulated depreciation of P320,000) - 480,000, Liabilities - 180,000. On April l, 2021, it was determined that the inventory of Vans had a fair value of P190,000 and the plant and equipment (net) had a fair value of P560,000. What is the amount of goodwill resulting from the business combination?
a.P180,000
b.P 50,000
c.P -0-
d.P150,000
Related Book For
Fundamentals of Advanced Accounting
ISBN: 978-0077667061
5th edition
Authors: Joe Ben Hoyle, Thomas Schaefer, Timothy Doupnik
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