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Determine whether there is any goodwill impairment and if so please calculate the goodwill impairment loss.    On the date of acquisition, the following information is available: Fair Value of the reporting unit is                                         $720,000 Fair Value of identifiable net assets                                      $601,000 Goodwill                                                                                $119,000   One year later at the first periodic review date the following information is available: Fair value of the reporting unit is                                            $788,000 Carrying value of the reporting unit (includes goodwill)        $889,000 Fair Value of identifiable net assets                                         $766,000                                                                                                    $22,000

Determine whether there is any goodwill impairment and if so please calculate the goodwill impairment loss.    On the date of acquisition, the following information is available: Fair Value of the reporting unit is                                         $720,000 Fair Value of identifiable net assets                                      $601,000 Goodwill                                                                                $119,000   One year later at the first periodic review date the following information is available: Fair value of the reporting unit is                                            $788,000 Carrying value of the reporting unit (includes goodwill)        $889,000 Fair Value of identifiable net assets                                         $766,000                                                                                                    $22,000

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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Determine whether there is any goodwill impairment and if so please calculate the goodwill impairment loss. 

 

On the date of acquisition, the following information is available:

Fair Value of the reporting unit is                                         $720,000

Fair Value of identifiable net assets                                      $601,000

Goodwill                                                                                $119,000

 

One year later at the first periodic review date the following information is available:

Fair value of the reporting unit is                                            $788,000

Carrying value of the reporting unit (includes goodwill)        $889,000

Fair Value of identifiable net assets                                         $766,000

                                                                                                   $22,000

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