not use ai please In its current-year assessment of goodwill, Pelota provides the following individual asset and liability carrying amounts for each of itsreporting units:Tangible assetsTrademarkComputer softwareUnpatented technologyLicensesCopyrightsGoodwillLiabilitiesPage 138Carrying AmountsR-oneR-twoR-three$180,000$200,000$140,000170,00090,000170,00090,00050,000120,000(30,000)150,00090,000The total fair values for each reporting unit (including goodwill) are $510,000 for R-one, $580,000 for R-two, and $560,000 for R-three.To date, Pelota has reported no goodwill impairments.

Step 1:How much goodwill impairment should Purchase report this year for each of its reporting…

Answered: In its current-year assessment of…

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter12: Intangibles

Section: Chapter Questions

Problem 4C

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What should be the carrying value of goodwill for reporting unit A at year - end? What should be the carrying value of goodwill for reporting unit D at year-end ? What impairment loss should reporting unit B report for the year?\table [[Reporting Unit, A, B, C, D Reporting Unit Carrying Value of reporting unit Goodwill included in carrying value Fair Value of net identifiable assets at year-end Fair Value of reporting unit at year-end G A $600,000 $60,000 $600,000 $590,000 B C $330,000 $520,000 $48,000 $40,000 $300,000 $500,000 $305,000 $585,000 D $380,000 $28,000 $375,000 $400,000
Topic: Intangible Assets (Goodwill) Sarrah Company is interested in computing the goodwill to be recognized in the purchase of ABC Company in January 2022. The following information was taken from the records of ABC Company: Net Income Net Assets 2017 360,000 1,600,000 2018 388,000 1,800,000 2019 288,000 1,900,000 2020 380,000 2,000,000 2021 394,000 2,100,000 1,810,000 9,400,000 Goodwill is measured by capitalizing excess earnings at 40% with normal return on average net assets at 10%. What amount should be recorded as acquisition cost of ABC…
Naughty Company assembles the following data relative to a certain entity in determining the amount to be paid for net assets and goodwill: Assets at fair value before goodwill 2, 600, 000Liabilities 900, 000Shareholders’ equity 1, 700, 000 Net earnings after elimination of unusual or infrequent items:2008 200, 0002009 230, 0002010 300, 0002011 250, 0002012 270, 000 Required:Calculate the amount of goodwill under the following:1. Average earnings are capitalized at 10%2. A return of 8% is considered normal on net assets at fair value. Excess earnings are capitalized at 15%.3. A return of 10% is considered normal on net assets at fair value. Goodwill is measured at 5 years excess earnings.4. A return of 10% is considered normal on net assets at fair value. Excess earnings are expected to…
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please dont provide answer in image format thank you Purchase Company recently acquired several businesses and recognized goodwill in each acquisition. Purchase has allocated the resulting goodwill to its three reporting units: RU-1, RU-2, and RU-3. Purchase opts to skip the qualitative assessment and therefore performs a quantitative goodwill impairment review annually. In its current-year assessment of goodwill, Purchase provides the following individual asset and liability carrying amounts for each of its reporting units: Carrying Amounts RU-1 RU-2 RU-3 Tangible assets $218,000 $220,000 $180,750 Trademark 210,000 Customer list 124,500 Unpatented technology 233,000 Licenses 103,500 Copyrights 55,500 Goodwill 188,300 245,550 135,500 Liabilities (35,750) The total fair values for each reporting unit (including goodwill) are $675,150 for RU-1, $769,050 for RU-2, and $757,750 for RU-3. To date, Purchase has reported no…
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COMPUTE THE GOODWILL.
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please dont provide answer in image format thank you
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