On December 31, 2xx1, Gray Company reported assets of P5,000,000 and liabilities of P2,000,000. The carrying amounts of the assets approximate fair value, except for land with a fair value that is P300,000 greater than the carrying amount. On December 31, 2xx1, Black Company paid P6,000,000 to acquire Gray Company. What amount of goodwill should be recorded by the acquirer as a result of this purchase?

Answer rating: 100% (QA)

Goodwill Price paid Face value of Net Assets ... View the full answer