year 2013 had goodwill impairmentloss of $30,000, what would be thebalance of goodwill afterIfimpairment? *O $200,000$180,000$210,000O $170,000None of the options is correct On January 1, 2010, P Companyacquired the net assets of SCompany for $1,580,000 cash. Thefair value of S Co. identifiable netassets was $1,310,000 on this date. PCompany decided to measuregoodwill impairment using thepresent value of future cash flows toestimate the fair value of thereporting unit (S Co.). The informationfor these subsequent years is asfollows:Carrying value ofSCo. IdentifiableNet Assets$1,160,000$1,120,000Fair ValueS Co. IdentifiableNet Assets$1,190,000$1,210,000Present valueof Future Cash Flows$1,390,000$1,400,000Year20112012* Identifiable net assets do not include goodwil.

A business combination occurs when an entity acquires control over an organization. Asset purchases…

Answered: If year 2013 had goodwill impairment…

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

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

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.

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