In year 2012 S Companyhad:Excess of fair value over carryingvalue of $70,000Excess of carrying value over fairvalue of $70,000Excess of fair value over carryingvalue of $80,000Excess of carrying value over fairvalue of $80,000None 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.

Answered: In year 2012 S Company had: Excess of…

In year 2012 S Company had: Excess of fair value over carrying value of $70,000 Excess of carrying value over fair value of $70,000 Excess of fair value over carrying value of S80.000

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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In year 2011S Company had: Impairment loss of $60,000 Impairment loss of $70,000 Impairment loss of $40,000 No Impairment loss None of the options is correct
Solve for the Equivalent uniform annual worth.
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