Fast owns 100% of Slow and had recorded $700,000 of goodwill from acquiring Slow many years ago. It is now 3 years later and the fair value of Slow is $1,300,000 and the book value of Slow inclusive of goodwill is $1,100,000. The implied value of goodwill is $650,000 and the book value of goodwill continues to be $700,000. What is the amount of goodwill impairment, if any. 2. Assume same facts as part a. except that the fair value of Slow is $900,000 instead of $1,300,000. What is the amount of goodwill impairment, if any.
Fast owns 100% of Slow and had recorded $700,000 of goodwill from acquiring Slow many years ago. It is now 3 years later and the fair value of Slow is $1,300,000 and the book value of Slow inclusive of goodwill is $1,100,000. The implied value of goodwill is $650,000 and the book value of goodwill continues to be $700,000. What is the amount of goodwill impairment, if any. 2. Assume same facts as part a. except that the fair value of Slow is $900,000 instead of $1,300,000. What is the amount of goodwill impairment, if any.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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- Fast owns 100% of Slow and had recorded $700,000 of
goodwill from acquiring Slow many years ago. It is now 3 years later and the fair value of Slow is $1,300,000 and the book value of Slow inclusive of goodwill is $1,100,000. The implied value of goodwill is $650,000 and the book value of goodwill continues to be $700,000. What is the amount of goodwill impairment, if any.
2. Assume same facts as part a. except that the fair value of Slow is $900,000 instead of $1,300,000. What is the amount of goodwill impairment, if any.
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