(a) Prepare an entry to record impairment of the goodwill, if necessary. Repeat instruction (a) assuming that the fair value of the division is estimated to be $1,407,750. (b) Prepare the journal entry necessary to record the appropriate transaction. (Credit account titles are automatically indented whi amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter O for the amounts debit entries before credit entries) No. Account Titles and Explanation Debit Credit
(a) Prepare an entry to record impairment of the goodwill, if necessary. Repeat instruction (a) assuming that the fair value of the division is estimated to be $1,407,750. (b) Prepare the journal entry necessary to record the appropriate transaction. (Credit account titles are automatically indented whi amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter O for the amounts debit entries before credit entries) No. Account Titles and Explanation Debit Credit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Subject: acc
Transcribed Image Text:Sandhill Corp. purchased Wildhorse Co. 4 years ago and at that time recorded goodwill of $659,200. The Wildhorse Division's net
identifiable assets, including goodwill, have a carrying amount of $1,422,900. The fair value of the division is estimated to be
$1,632.000.
(a)
(b)
Prepare the journal entry necessary to record the appropriate transaction. (Credit account titles are automatically indented when the
amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter O for the amounts List all
debit entries before credit entries)
Prepare an entry to record impairment of the goodwill, if necessary.
Repeat instruction (a) assuming that the fair value of the division is estimated to be $1,407,750.
No. Account Titles and Explanation
(a)
(b)
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