Goodwill Impairment Test Assume the equity method Equity Investment account relating to a subsidiary has a reported balance of $8,785,000, including $840,000 of Goodwill. The fair value of the subsidiary is $7,875,000. The fair value of the subsidiary's individually identifiable net assets is $7,525,000. The subsidiary has only one reporting unit, which is the same as the overall entity. For this fact set, determine whether Goodwill is impaired and, if so, the amount of impairment. Enter the impairment amount below. If goodwill is not impaired, enter zero. $490,000 x Prepare the required journal entry if you determine Goodwill is impaired. If goodwill is not impaired, select "No entry" as your answers under Description and leave the Debit and Credit answers blank (zero). Description Equity income from subsidiary Equity investment Debit Credit ÷ 910,000 x 0 0 910,000 x
Goodwill Impairment Test Assume the equity method Equity Investment account relating to a subsidiary has a reported balance of $8,785,000, including $840,000 of Goodwill. The fair value of the subsidiary is $7,875,000. The fair value of the subsidiary's individually identifiable net assets is $7,525,000. The subsidiary has only one reporting unit, which is the same as the overall entity. For this fact set, determine whether Goodwill is impaired and, if so, the amount of impairment. Enter the impairment amount below. If goodwill is not impaired, enter zero. $490,000 x Prepare the required journal entry if you determine Goodwill is impaired. If goodwill is not impaired, select "No entry" as your answers under Description and leave the Debit and Credit answers blank (zero). Description Equity income from subsidiary Equity investment Debit Credit ÷ 910,000 x 0 0 910,000 x
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
am.107.
Transcribed Image Text:Goodwill Impairment Test
Assume the equity method Equity Investment account relating to a subsidiary has a reported balance of $8,785,000, including $840,000 of Goodwill. The fair value of the subsidiary is $7,875,000. The fair value of the
subsidiary's individually identifiable net assets is $7,525,000. The subsidiary has only one reporting unit, which is the same as the overall entity.
For this fact set, determine whether Goodwill is impaired and, if so, the amount of impairment.
Enter the impairment amount below. If goodwill is not impaired, enter zero.
$490,000
x
Prepare the required journal entry if you determine Goodwill is impaired.
If goodwill is not impaired, select "No entry" as your answers under Description and leave the Debit and Credit answers blank (zero).
Description
Equity income from subsidiary
Equity investment
Debit
Credit
÷
910,000 x
0
0
910,000 x
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