Prepare any appropriate journal entries for goodwill impairment assuming that Marin Construction & Paving is reporting under ASPE. (

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Marins Construction & Paving expanded its business by purchasing Alcott Maintenance, a division that provides road maintenance services. The division was purchased three years ago for $3,015,000 and has been identified as a reporting unit. The net assets for the division including goodwill are as follows:

Cash   $262,000  
Accounts Receivables   323,000  
Inventory   774,000  
Property, Plant & Equipment   867,000  
Goodwill   1,137,000  
Accounts Payable   (121,000)  
Unearned Revenue   (70,000)  
Net assets, at carrying amounts   $3,172,000  

The fair value of the Alcott Maintenance Division reporting unit as a whole is estimated to be $2,887,000. Management determines that the unit’s value in use is $2,984,000.

(a)

 
 
Prepare any appropriate journal entries for goodwill impairment assuming that Marin Construction & Paving is reporting under ASPE. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Account Titles and Explanation
Debit
Credit
 
 
 
 
 
 
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