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Clever Company purchased for P4,000,000 cash all of the outstanding ordinary shares of Sun Company when Sun's statement of financial position showed net assets of
Clever Company purchased for P4,000,000 cash all of the outstanding ordinary shares of Sun Company when Sun's statement of financial position showed net assets of P3,200,000. On the date of acquisition, Sun's assets and liabilities had fair value different from the carrying amount as follows: Carrying amount Fair value Property, plant and equipment, net Other assets Long-term debt 5,000,000 500,000 3,000,000 5,750,000 0 2,800,000 What amount should be reported as goodwill in the consolidated statement of financial position of Clever Company and its wholly-owned subsidiary
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