How much is the goodwill for carpenter co

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Reference no: EM132726267

Problem 1: Carpenter Co. acquires 100% controlling interest in Wood Co. by issuing 2,000 shares with par value per share of P 100 and fair value per share of P 500. Carpenter Co. incurs stock issuance costs of P 10 per share. On acquisition date, Wood Co.'s identifiable assets and liabilities have fair values of P 2,800,000 and P 1,600,000, respectively. Carpenter Co. incurred P 40,000 in hiring an independent appraiser to value Wood's assets and liabilities. After the combination. Carpenter intends to eliminate some of Wood's activities. The estimated costs are P 20,000. In addition, Carpenter Co. expects to incur losses of P 80,000 during the first year after the business combination. How much is the goodwill (gain on bargain purchase)?

Reference no: EM132726267

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