In good form, show the computation of the implied goodwill in the below transactions. MANILA COMPANY acquired

In good form, show the computation of the implied goodwill in the below transactions.

   

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MANILA COMPANY acquired a controlling interest in the outstanding common stock of MAKATI COMPANY when their audited balance sheets as of Dec. 31, 2020, are as follows: Cash Receivables Inventories Equipment Other Assets Total Assets Liabilities Common Stock Additional Paid in Capital Retained Earnings Total Equities Manila Co. P2,500,000 1,500,000 3,800,000 7,000,000 200,000 P15,000,000 P7,000,000 5,000,000 1,000,000 2,000,000 P15,000,000 Makati Co. P200,000 700,000 900,000 1,200,000 P3,000,000 P1,100,000 1,600,000 300,000 P3,000,000 MANILA COMPANY acquired a controlling interest in the outstanding common stock of MAKATI COMPANY when their audited balance sheets as of Dec. 31, 2020, are as follows: Cash Receivables Inventories Equipment Other Assets Total Assets Liabilities Common Stock Additional Paid in Capital Retained Earnings Total Equities Manila Co. P2,500,000 1,500,000 3,800,000 7,000,000 200,000 P15,000,000 P7,000,000 5,000,000 1,000,000 2,000,000 P15,000,000 Makati Co. P200,000 700,000 900,000 1,200,000 P3,000,000 P1,100,000 1,600,000 300,000 P3,000,000

Answer rating: 100% (QA)

The implied goodwill in the acquisition of Makati Company by Manila Company can be calculated as fol... View the full answer