On October 1, 2021, ABC acquired the net assets of DEF which resulted to goodwill. When ABC issued its December 31, 2021, financial statements, the valuation of an acquired trademark was incomplete. ABC used P10,000,000 as provisional fair value of trademarks and determined a 5-year amortization life. ABC appropriately disclosed in its December 31, 2021 financial statements that the trademark was measured at a provisional amount. On April 30, 2022, the valuation of the trademark was finalized. The fair value of the acquisition date amounted to P212,000,000. Compute for the increase or (decrease) or the Goodwill in December 31, 2022.

On October 1, 2021, ABC acquired the net assets of DEF which resulted to goodwill. When ABC issued its December 31, 2021, financial statements, the valuation of an acquired trademark was incomplete. ABC used P10,000,000 as provisional fair value of trademarks and determined a 5-year amortization life. ABC appropriately disclosed in its December 31, 2021 financial statements that the trademark was measured at a provisional amount. On April 30, 2022, the valuation of the trademark was finalized. The fair value of the acquisition date amounted to P212,000,000. Compute for the increase or (decrease) or the Goodwill in December 31, 2022.

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 15E

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On October 1, 2021, ABC acquired the net assets of DEF which resulted to goodwill. When ABC issued its December 31, 2021, financial statements, the valuation of an acquired trademark was incornplete. ABC used P10,000,000 as provisional fair value of trademarks and determined a 5-year amortization life. ABC appropriately disclosed in its December 31, 2021 financial statements that the trademark was measured at a provisional amount. On April 30, 2022, the valuation of the trademark was finalized. The fair value of the acquisition date amounted to P212,000,000. Compute fr. the increase or (decrease) of the Goodwill in December 31, 2022
On October 1, 2021, ABC acquired the net assets of DEF which resulted to goodwill. When ABC issued its Decemher 31. 2021. financial statements. the valuation of an acquired trademark was incomplete. ABC used P10,000,000 as provisional fair value of trademarks and determined a 5-year amortization life. ABC appropriately disclosed in its December 31, 2021 tinancial statements that the trademark was measured at a provisional amount. On April 30, 2022, the valuation of the trademark was finalized. The fair value of the acquisition date amounted to P212,000,000. Compute fpr the increase or (decrease) of the Goodwill in December 31, 2022
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