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8) Based on the preceding information, what amount of goodwill will be reported for this division - after any necessary impairments - if the fair value of the entire reporting unit is determined to be $200,000?

8) Based on the preceding information, what amount of goodwill will be reported for this division - after any necessary impairments - if the fair value of the entire reporting unit is determined to be $200,000?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Following its acquisition of the net assets of Dan Company, Empire Company assigned goodwill of $60,000 to one of the reporting divisions. Information for this division follows: Cash Inventory Equipment Goodwill Accounts Payable Carrying Amount S A) SO B) $60,000 C) $30,000 20,000 35,000 125,000 60,000 30,000 Fair Value S 20,000 40,000 160,000 30,000 8) Based on the preceding information, what amount of goodwill will be reported for this division - after any necessary impairments - if the fair value of the entire reporting unit is determined to be $200,000?
Transcribed Image Text:Following its acquisition of the net assets of Dan Company, Empire Company assigned goodwill of $60,000 to one of the reporting divisions. Information for this division follows: Cash Inventory Equipment Goodwill Accounts Payable Carrying Amount S A) SO B) $60,000 C) $30,000 20,000 35,000 125,000 60,000 30,000 Fair Value S 20,000 40,000 160,000 30,000 8) Based on the preceding information, what amount of goodwill will be reported for this division - after any necessary impairments - if the fair value of the entire reporting unit is determined to be $200,000?
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