One year after acquisition date, the goodwill acquired was regarded as having become impaired by $80 000. The appropriate consolidation adjustment in relation to the impairment will include the following line: Select one: DR Goodwill $80 000 CR Business combination valuation reserve $80 000 CR Impairment expense $80 000 CR Accumulated impairment losses $80 000
Depreciation Methods
The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.
Depreciation Accounting
In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.
One year after acquisition date, the
Select one:
DR Goodwill $80 000
CR Business combination valuation reserve $80 000
CR Impairment expense $80 000
CR Accumulated impairment losses $80 000
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