In 2014, Alliant Corporation acquired Centerpoint Inc. for $300 million, of which $50 million was allocated to goodwill. At the end of 2016, management has provided the following information for a required goodwill impairment test: Fair value of Centerpoint, Inc. $220 million Fair value of Centerpoint’s net assets (excluding goodwill) 200 million Book value of Centerpoint’s net assets (including goodwill) 250 million Required: 1. Determine the amount of the impairment loss. 2. Repeat requirement 1 assuming that the fair value of Centerpoint is $270 million.

Q: Armstrong Company acquired Hall Corporation in 2015 and recognized the goodwill of $700,000. Before…

A:

Q: Oriole Corporation purchased Pharoah Company 3 years ago and at that time recorded goodwill of…

A: According to International Accounting Standards (IAS), specifically IAS 36  -  "Impairment of…

Q: In 2022, Mao Li Corporation determined that a production machine used in its operations was impaired…

A: The question is asking how the gain due to an increase in the fair value of an asset, which was…

Q: On January 1, 2013, Porsche Company acquired the net assets of Saab Company for $450,500 cash. The…

A: Solution: Introduction: Impairment is a diminishing value or a state of ability or fact which occurs…

Q: On December 31, 2022, Belt Enterprises must measure its impairment loss for plant and equipment.…

A: Impairment loss occurs when the carrying value of an asset is higher than the recoverable value of…

Q: In 2015, Zee Tee Inc. acquired production machinery at a cost of $640,000, which now has a…

A: The objective of the question is to calculate the amount that Zee Tee Inc. should recognize as a…

Q: Robinson Company purchased Franklin Company at a price of $3,950,000. The fair market value of the…

A: Introduction: Goodwill is an intangible asset related to the purchase of a business by another. When…

Q: 1. Prepare any necessary journal entries associated with the three classes of assets for the year…

A: Hey there since you have posted multiple questions, we can answer only first question,  please…

Q: In 2015, DimDung Company acquired production machinery which now has a book value of ¥745,000. The…

A: The objective of the question is to determine the carrying value of the machinery after an…

Q: In 2022, Alliant Corporation acquired Centerpoint Incorporated for $300 million, of which $50…

A: An intangible asset connected to the acquisition of one business by another is goodwill. In…

Q: In 2022, Alliant Corporation acquired Centerpoint Incorporated for $339 million, of which $59…

A: Goodwill is the brand name of the entity. Goodwill helps an entity to earn more than its…

Q: On May 28, 2021, Pesky Corporation acquired all of the outstanding common stock of Harman, Inc., for…

A: Goodwill is the difference between the purchase consideration and the fair value of the net assets…

Q: Broncos Corporation acquired the following assets associated with a manufacturing facility for a…

A: The question is based no the concept of Financial Accounting. As per the Bartleby guidelines we are…

Q: Berrie Electric Inc. has the following amounts included in its general ledger at December 31, 2023:…

A: Intangible assets is one of the important section of balance sheet. It means those assets which can…

Q: Oriole Industries purchased Pharoah, Inc. on June 30, 2014 and recorded goodwill of $68,200 on this…

A: Goodwill is an intangible asset that is associated with the purchase of one company by another. It…

Q: In 2022, Mao Li Corporation determined that a production machine used in its operations was impaired…

A: Under IFRS, the gain due to the increase in fair value of the production machine in 2023 would be…

Q: In 2022, Mao Li Corporation determined that a production machine used in its operations was impaired…

A: The question is asking how the gain due to an increase in the fair value of an asset, which was…

Q: (excluding goodwill) had a fair value of $2,900,000 at that time. What amount of loss on impairment…

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

Q: In2018 Martin Corp.acquired and recorded good will of $45 million .martin consider Glynco a separate…

A: Goodwill is an intangible asset that is for generating super-profits in the future that cannot be…

Q: On August 1, 2017, Riverbed Corporation acquired Marin, Inc. for a cash payment of $2.30 million. At…

A: Goodwill is an excess amount of purchase consideration over the net value of assets. It is based on…

Q: On September 30, 2014, Leeds LTD, acquired a potent in conjunction with the purchase of another…

A: An intangible asset is an asset that is not physical in nature, such as a patent, brand, trademark,…

Q: of 2021, the net assets (including goodwill) of Glynco are $320 million and its estimated fair value…

A: Impairment loss is the when the carrying amount of the asset exceeds the recoverable…

Q: Marigold Corporation purchased Splish Brothers Company 3 years ago and at that time recorded…

A: According to International Accounting Standards (IAS), specifically IAS 36  -  "Impairment of…

Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.