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21. Coldspring Company purchased Freshwater Company's net assets and assigned them to tw separate reporting units. The goodwill of $372,000 is assigned to the reporting units below. What is the impairment amount to be reported by Coldspring Company based on the 1-step goodwill impairment approach? Reporting Unit

21. Coldspring Company purchased Freshwater Company's net assets and assigned them to tw separate reporting units. The goodwill of $372,000 is assigned to the reporting units below. What is the impairment amount to be reported by Coldspring Company based on the 1-step goodwill impairment approach? Reporting Unit

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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21. Coldspring Company purchased Freshwater Company's net assets and assigned them to two separate reporting units. The goodwill of $372,000 is assigned to the reporting units below. What is the impairment amount to be reported by Coldspring Company based on the 1-step goodwill impairment approach? Reporting Unit A B Carrying value of investment 2'050'000 2'000'000 Goodwill included in carrying value 216'000 156'000 Fair value of net identifiable assets at year end 1'800'000 1'800'000 Fair value of reporting unit at year end 2'500'000 1'910'000 A. $372,000 B. $450,000 C. $90,000 D. none of the above
Transcribed Image Text:21. Coldspring Company purchased Freshwater Company's net assets and assigned them to two separate reporting units. The goodwill of $372,000 is assigned to the reporting units below. What is the impairment amount to be reported by Coldspring Company based on the 1-step goodwill impairment approach? Reporting Unit A B Carrying value of investment 2'050'000 2'000'000 Goodwill included in carrying value 216'000 156'000 Fair value of net identifiable assets at year end 1'800'000 1'800'000 Fair value of reporting unit at year end 2'500'000 1'910'000 A. $372,000 B. $450,000 C. $90,000 D. none of the above
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