determine the goodwill impairment Net book value of Devon 3,600,000 Goodwill included in net book value 1,400,000 Fair value of Devon 2,800,000 Fair value of Devon's identifiable net assets, excluding goodwill 5,200,000

determine the goodwill impairment Net book value of Devon 3,600,000 Goodwill included in net book value 1,400,000 Fair value of Devon 2,800,000 Fair value of Devon's identifiable net assets, excluding goodwill 5,200,000

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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Question

determine the goodwill impairment

Net book value of Devon	3,600,000
Goodwill included in net book value	1,400,000
Fair value of Devon	2,800,000
Fair value of Devon's identifiable net assets, excluding goodwill	5,200,000

Definition Definition Intangible asset that includes proprietary or intellectual property and brand value of a firm. Goodwill is recorded in the books when a firm purchases another firm and the purchase price is more than the fair value of net identifiable assets of the acquired business. The amount of goodwill is recorded on the asset side of the balance sheet (statement of financial position).

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