What amount should be reported as goodwill in the statement

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Reference no: EM132703172

Problem 1: At the current year-end, Isserlis Company purchased for P8,000,000 cash all of the outstanding ordinary shares of another entity when the statement of financial position of the acquire showed net assets of P6,400,000. The acquiree's assets and liabilities had fair value different from the carrying amount as follow: PPE, net CA 10,000,000; FV 11,500,000; Other assets CA 1,000,000; FV 0; Long-term debt CA 6,000,000; FV 5,600,000. As a result of the transaction, what amount should be reported as goodwill in the statement of financial position at current year-end?

Reference no: EM132703172

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