Papa Inc. acquired the net assets of Fafa Inc. on June 30, 2018 in a business...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Papa Inc. acquired the net assets of Fafa Inc. on June 30, 2018 in a business combination. The cost of acquisition is P2,000,000 more than the total fair market value of the company's identifiable net assets. Among the identifiable assets are the following intangibles: Book value Trademark Customer lists Franchise 250,000 500,000 200,000 Fair market value 400,000 750,000 350,000 Estimated remaining life 3 5 Required: 1. How much is the total intangibles including goodwill to be initially recognized? 2. What is the total carrying value of the various intangibles including goodwill on December 31, 2018? Papa Inc. acquired the net assets of Fafa Inc. on June 30, 2018 in a business combination. The cost of acquisition is P2,000,000 more than the total fair market value of the company's identifiable net assets. Among the identifiable assets are the following intangibles: Book value Trademark Customer lists Franchise 250,000 500,000 200,000 Fair market value 400,000 750,000 350,000 Estimated remaining life 3 5 Required: 1. How much is the total intangibles including goodwill to be initially recognized? 2. What is the total carrying value of the various intangibles including goodwill on December 31, 2018?
Expert Answer:
Answer rating: 100% (QA)
1 To calculate the total intangibles including goodwill to be initially recognized we need to determ... View the full answer
Related Book For
Posted Date:
Students also viewed these accounting questions
-
The following draft statement of financial positions relate to Largo, a public limited company, Fusion, a public limited company and Spine, a public limited company, as at 30 November 20X3. The...
-
Q2. Alpha currently has investments in two other entities, Beta (Note 1) and Gamma (Note 2). The draft statements of financial position of Alpha and Beta at 30 September 2018 were as follows: Alpha...
-
The Bigfork Company is a retail company that began operations on January 1,2018. The Bigfork Company is authorized to issue 1,000,000 shares of P10 par value ordinary share and 500,000 shares of 3%,...
-
Consider a stylized two-period model with banking. The aggregate abatement cost function in period t is given by C(E)= (a t be) 2 /2b with a 1 < a 2 is D(E)=dE 2 /2. (a) Determine the optimal...
-
In a laboratory experiment, students hang the weights shown from a beam of negligible weight. (a) Determine the reaction at the fixed support A knowing that end D of the beam does not touch support...
-
Analysis of return on assets Swiss Group reports net income of \($40,000\) for 2007. At the beginning of 2007, Swiss Group had \($200,000\) in assets. By the end of 2007, assets had grown to...
-
What are the three basic steps involved in settling a case? How can the paralegal assist the lawyer with each of these steps?
-
Desrosiers Ltd. had the following long-term receivable account balances at December 31, 2013: Notes receivable........ $1,800,000 Notes receivable-Employees... 400,000 Transactions during 2014 and...
-
A regional distributor purchases discontinued appliances from various suppliers and then sells them on demand to retailers in the region. The distributor operates 5 days per week, 52 weeks per year....
-
On January 1, 2020, Wildhorse Leasing Inc., a lessor that uses IFRS 16, signed an agreement with Rock River Inc., a lessee, for the use of a compression system. The system cost $424,000 and Wildhorse...
-
Turner is looking to change publishers and is entertaining the idea of signing a contract with Bestbooks. Paige abhors the business side of the literary world and has asked an agent to hammer out a...
-
You want to be a millionaire when you retire in 40 years. You can earn A 12.5 percent annual return. How much more will you have to save each month if you wait 10 years to start saving versus if you...
-
Whirly Corporation's contribution format income statement for the most recent month is shown below: Sales (8,000 units) Variable expenses Contribution margin Fixed expenses Total Per Unit $ 272,000 $...
-
A 69 kV, 30 MVAR, three phase capacitor bank is connected in Y with the neutral grounded. It is supplied from source which also has a grounded neutral. The reactance of the source is 0.12 pu on a 10...
-
You want to buy a piece of farm equipment for $70,000 and the finance office has quoted you a loan with an APR of 12% compounded monthly for 60 months to make the purchase. What will your monthly...
-
A $1,000 par value bond that pays interest annually just paid $106 in interest. What is the coupon rate? Q2) A 09.60% coupon, 21-year annual bond is priced at $986. What is the current yield for...
-
In the network representation of UELSP, the extreme point solutions never simultaneously have flow into the demand node in period t from both the incoming inventory arc and the incoming production...
-
The following processes constitute the air-standard Diesel cycle: 12: isentropic compression,23: constant-volume energy addition (T and P increase),34: constant-pressure energy addition (v...
-
In 2015, Bay City purchased supplies valued at $350,000. At the end of the year, $65,000 of the supplies were still in the inventory. No supplies were on hand at the beginning of the year. The city...
-
How does the FASB's conceptual framework influence the development of new standards?
-
On January 1, 2015, Porter Company purchased an 80% interest in Salem Company for $260,000. On this date, Salem Company had common stock of $207,000 and retained earnings of $130,500. An examination...
-
The duties of a nozzle and a diffuser are (a) Opposite to each other (b) Identical to each other (c) Not comparable at all (d) None of these.
-
Nozzles and diffusers are widely used in (a) Heat exchangers (b) Refrigeration systems (c) Rockets and other space vehicles (d) None of these.
-
1 ton of refrigeration is equivalent to (a) \(3.517 \mathrm{~kW}\) (b) \(4.202 \mathrm{~kW}\) (c) \(250 \mathrm{kcal} / \mathrm{min}\) (d) \(50000 \mathrm{kcal} / \mathrm{min}\).
Study smarter with the SolutionInn App