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. The entry to record goodwillimpairment loss must include: *Increase in goodwill accountIncrease in cash accountno effect on goodwillIncrease of Imparimentloss(Goodwill) account.None of the options is correctоОо о

Name: On January 1, 2010, P Companyacquired the net assets of SCompany for
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Description: 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 flo

good will is an intangible asset and it is present in all the companies. It cant be seen or touched.…

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On January 1, 2010, P Company acquired the net assets of S Company for $1,580,000 cash. The fair value of S Co. identifiable net assets was $1,310,000 on this date. P Company decided to measure goodwill impairment using the present value of future cash flows to

On January 1, 2010, P Company acquired the net assets of S Company for $1,580,000 cash. The fair value of S Co. identifiable net assets was $1,310,000 on this date. P Company decided to measure goodwill impairment using the present value of future cash flows to

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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Arizona Corp. acquired the business Data Systems for $320,000 cash and assumed all liabilities at the date of purchase. Data's books showed tangible assets of $260,000, liabilities of $40,000, and stockholder's equity of $220,000. An appraiser assessed the fair market value of the tangible assets at $250,000 at the date of acquisition. Compute the amount of good will acquired Record the qcquisition in a financial statements model When will teh goodwill be written off under the impairment rules Record the acquisition in general journal format
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In2018 Martin Corp.acquired and recorded good will of $45 million .martin consider Glynco a separate reporting unit.by the end of 2021,the assets (including goodwil of Glynco are $320 milion and its estimated fair value is $260million.the amount of the impairment loss that martin would record for goodwill at the end of 2021 is:) 1) $0. 2)$60Million. 3)$45 Million. 4)$15Million.
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