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If year 2013 had goodwill impairment loss of $30,000, what would be the balance of goodwill after impairment? * O $200,000 $180,000 O $210,000 $170,000 O None of the options is correct

If year 2013 had goodwill impairment loss of $30,000, what would be the balance of goodwill after impairment? * O $200,000 $180,000 O $210,000 $170,000 O None of the options is correct

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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year 2013 had goodwill impairment loss of $30,000, what would be the balance of goodwill after If impairment? * O $200,000 $180,000 $210,000 O $170,000 None of the options is correct
Transcribed Image Text:year 2013 had goodwill impairment loss of $30,000, what would be the balance of goodwill after If impairment? * O $200,000 $180,000 $210,000 O $170,000 None of the options is correct
On January 1, 2010, P Company acquired the net assets of S Company for $1,580,000 cash. The fair value of S Co. identifiable net assets was $1,310,000 on this date. P Company decided to measure goodwill impairment using the present value of future cash flows to estimate the fair value of the reporting unit (S Co.). The information for these subsequent years is as follows: Carrying value of SCo. Identifiable Net Assets $1,160,000 $1,120,000 Fair Value S Co. Identifiable Net Assets $1,190,000 $1,210,000 Present value of Future Cash Flows $1,390,000 $1,400,000 Year 2011 2012 * Identifiable net assets do not include goodwil.
Transcribed Image Text:On January 1, 2010, P Company acquired the net assets of S Company for $1,580,000 cash. The fair value of S Co. identifiable net assets was $1,310,000 on this date. P Company decided to measure goodwill impairment using the present value of future cash flows to estimate the fair value of the reporting unit (S Co.). The information for these subsequent years is as follows: Carrying value of SCo. Identifiable Net Assets $1,160,000 $1,120,000 Fair Value S Co. Identifiable Net Assets $1,190,000 $1,210,000 Present value of Future Cash Flows $1,390,000 $1,400,000 Year 2011 2012 * Identifiable net assets do not include goodwil.
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