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 estimate the fair value of the reporting unit (S Co.). The information for these subsequent years is as follows: Carrying value of S Co. Identifiable Net Assets $1,160,000 $1,120,000 Fair Value SCo. Identifiable Net Assets Present value of Future Cash Flows $1,390,000 $1,400,000 Year 2011 $1,190,000 2012 $1,210,000 * Identifiable net assets do not include goodwill. Choose the correct answer: In year 2011 S Company had: *
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 estimate the fair value of the reporting unit (S Co.). The information for these subsequent years is as follows: Carrying value of S Co. Identifiable Net Assets $1,160,000 $1,120,000 Fair Value SCo. Identifiable Net Assets Present value of Future Cash Flows $1,390,000 $1,400,000 Year 2011 $1,190,000 2012 $1,210,000 * Identifiable net assets do not include goodwill. Choose the correct answer: In year 2011 S Company had: *
Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
ChapterD: Investments
Section: Chapter Questions
Problem 2E
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