Fleming Corporation acquired Out-of-Sight Products on January 1, 2025 for $4,000,000, andrecorded goodwill of $750,000 as a result of that purchase. At December 31, 2025, the Out-of-Sight Products Division had a fair value of $3,400,000. The net identifiable assets of the Division(excluding goodwill) had a fair value of $2,900,000 at that time. What amount of loss onimpairment of goodwill should Fleming record in 2025? O $-0- O $250,000 O $350,000 O$600,000

Impairment of goodwill is defined as the accounting charge which business reports when the carrying…

Answered: (excluding goodwill) had a fair value…

(excluding goodwill) had a fair value of $2,900,000 at that time. What amount of loss on impairment of goodwill should Fleming record in 2025? O $-0-O $250,000 O $350,000 $600,000

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

Fleming Corporation acquired Out-of-Sight Products on January 1, 2025 for $4,000,000, and
recorded goodwill of $750,000 as a result of that purchase. At December 31, 2025, the Out-of-
Sight Products Division had a fair value of $3,400,000. The net identifiable assets of the Division
(excluding goodwill) had a fair value of $2,900,000 at that time. What amount of loss on
impairment of goodwill should Fleming record in 2025? O $-0- O $250,000 O $350,000 O
$600,000

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