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In 2023, Dooling Corporation acquired Oxford Incorporated for $250 million, of which $50 million was attributed to goodwill. At the end of 2024, Dooling's accountants derive the following information for a required goodwill impairment test: Book value of Oxford (including goodwill): Fair value of Oxford's tangible and intangible assets (excluding goodwill): Fair value of Oxford (the reporting unit): $ 234.5 million $204.9 million $ 260.0 million Assume the same facts as above, except that the fair value of Oxford (the reporting unit) is $225 million. Required: 1. Determine the amount, if any, of the goodwill impairment loss that Dooling must recognize on these assets. 2. Determine the proper balance of goodwill in Dooling's records at the end of 2024. Note: Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5). 1. Impairment loss $ 0.0 million 2. Balance of goodwill $ 0.0 million

In 2023, Dooling Corporation acquired Oxford Incorporated for $250 million, of which $50 million was attributed to goodwill. At the end of 2024, Dooling's accountants derive the following information for a required goodwill impairment test: Book value of Oxford (including goodwill): Fair value of Oxford's tangible and intangible assets (excluding goodwill): Fair value of Oxford (the reporting unit): $ 234.5 million $204.9 million $ 260.0 million Assume the same facts as above, except that the fair value of Oxford (the reporting unit) is $225 million. Required: 1. Determine the amount, if any, of the goodwill impairment loss that Dooling must recognize on these assets. 2. Determine the proper balance of goodwill in Dooling's records at the end of 2024. Note: Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5). 1. Impairment loss $ 0.0 million 2. Balance of goodwill $ 0.0 million

FINANCIAL ACCOUNTING
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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TB Problem 11-221 (Static) In 2023, Dooling Corporation acquired... In 2023, Dooling Corporation acquired Oxford Incorporated for $250 million, of which $50 million was attributed to goodwill. At the end of 2024, Dooling's accountants derive the following information for a required goodwill impairment test: Book value of Oxford (including goodwill): Fair value of Oxford's tangible and intangible assets (excluding goodwill): Fair value of Oxford (the reporting unit): $234.5 million $ 204.9 million $260.0 million Assume the same facts as above, except that the fair value of Oxford (the reporting unit) is $225 million. Required: 1. Determine the amount, if any, of the goodwill impairment loss that Dooling must recognize on these assets. 2. Determine the proper balance of goodwill in Dooling's records at the end of 2024. Note: Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5). 1. Impairment loss $ 0.0 million 2. Balance of goodwill $ 0.0 million
Transcribed Image Text:TB Problem 11-221 (Static) In 2023, Dooling Corporation acquired... In 2023, Dooling Corporation acquired Oxford Incorporated for $250 million, of which $50 million was attributed to goodwill. At the end of 2024, Dooling's accountants derive the following information for a required goodwill impairment test: Book value of Oxford (including goodwill): Fair value of Oxford's tangible and intangible assets (excluding goodwill): Fair value of Oxford (the reporting unit): $234.5 million $ 204.9 million $260.0 million Assume the same facts as above, except that the fair value of Oxford (the reporting unit) is $225 million. Required: 1. Determine the amount, if any, of the goodwill impairment loss that Dooling must recognize on these assets. 2. Determine the proper balance of goodwill in Dooling's records at the end of 2024. Note: Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5). 1. Impairment loss $ 0.0 million 2. Balance of goodwill $ 0.0 million
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