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Blossom Corporation acquired EOW Products on January 1, 2025 for $6900000, and recorded goodwill of $1300000 as a result of that purchase. At December 31, 2026, the EOW Products Division had a fair value of $5230000. The net identifiable assets of the Division (including goodwill) had a carrying value of $5940000 at that time. What amount of loss on impairment of goodwill should Blossom report in 2026? $960000 O $1670000 O $710000 O $0

Blossom Corporation acquired EOW Products on January 1, 2025 for $6900000, and recorded goodwill of $1300000 as a result of that purchase. At December 31, 2026, the EOW Products Division had a fair value of $5230000. The net identifiable assets of the Division (including goodwill) had a carrying value of $5940000 at that time. What amount of loss on impairment of goodwill should Blossom report in 2026? $960000 O $1670000 O $710000 O $0

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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Blossom Corporation acquired EOW Products on January 1, 2025 for $6900000, and recorded goodwill of $1300000 as a result of that purchase. At December 31, 2026, the EOW Products Division had a fair value of $5230000. The net identifiable assets of the Division (including goodwill) had a carrying value of $5940000 at that time. What amount of loss on impairment of goodwill should Blossom report in 2026? O $960000 O $1670000 O $710000 O $0
Transcribed Image Text:Blossom Corporation acquired EOW Products on January 1, 2025 for $6900000, and recorded goodwill of $1300000 as a result of that purchase. At December 31, 2026, the EOW Products Division had a fair value of $5230000. The net identifiable assets of the Division (including goodwill) had a carrying value of $5940000 at that time. What amount of loss on impairment of goodwill should Blossom report in 2026? O $960000 O $1670000 O $710000 O $0
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