Marigold Corporation purchased Splish Brothers Company 3 years ago and at that time recorded goodwill of $480,000. The Splish Brothers Division's net assets, including the goodwill, have a carrying amount of $960,000. The fair value of the division is estimated to be $1,150,000. Prepare Marigolds' journal entry, if necessary, to record impairment of the goodwill. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Marigold Corporation purchased Splish Brothers Company 3 years ago and at that time recorded goodwill of $480,000. The Splish Brothers Division's net assets, including the goodwill, have a carrying amount of $960,000. The fair value of the division is estimated to be $1,150,000. Prepare Marigolds' journal entry, if necessary, to record impairment of the goodwill. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 11PB: On May 1, 2015, Zoe Inc. purchased Branta Corp. for $15,000,000 in cash. They only received...

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