Swifty Corporation purchased Windsor Company 3 years ago and at that time recorded goodwill of $380,000. The Windsor Division'snet assets, including the goodwill, have a carrying amount of $760,000. The fair value of the division is estimated to be $1,010,000.Prepare Swifty' journal entry, if necessary, to record impairment of the goodwill. (Credit account titles are automatically indented whenamount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List debitentry before credit entry.)Account Titles and ExplanationeTextbook and MediaDebitCredit

Comparing the fair value with its carrying amount:The fair value of the Division =…

Answered: Swifty Corporation purchased Windsor…

Principles of Accounting Volume 1

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ISBN:9781947172685

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Chapter11: Long-term Assets

Section: Chapter Questions

Problem 10PA: Buchanan Imports purchased McLaren Corporation for $5,000,000 cash when McLaren had net assets worth...

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Leon Corp. purchased Spinks Co. 4 years ago and at that time recorded goodwill of €300,000. The Sinks Division's net assets, including goodwill, have a carrying amount of €720,000. The recoverable amount of the division is estimated to be €650,000. Prepare an entry to record the impairment of the goodwill. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
Alpesh
Oriole Corporation purchased Pharoah Company 3 years ago and at that time recorded goodwill of $777,600. The Division's net identifiable assets, including the goodwill, have a carrying amount of $1,296,000. The fair value of the division is estimated to be $1,188,000. Prepare Oriole's journal entry, if necessary, to record the impairment of the goodwill. (Credit account titles are automatically indented when the 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. List debit entry before credit entry.) Account Titles and Explanation Debit Credit
Sheffield Corporation owns a patent that has a carrying amount of $640,000. Sheffield expects future net cash flows from this patent to total $640,000. The fair value of the patent is $394,000. Prepare Sheffield's journal entry to record the loss on impairment. (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.) Account Titles and Explanation Debit Credit
Crane Corporation owns a patent that has a carrying amount of $612,000. Crane expects future net cash flows from this patent to total $382.500. The fair value of the patent is $474,300. Prepare the journal entry, if necessary, to record the loss on impairment. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter O for the amounts. Ust debit entry before credit entry) Account Titles and Explanation Debit Credit
Shamrock Inc. owns equipment that cost $470,000 and has accumulated depreciation of $122,000. The expected future net cash flows from the use of the asset are expected to be $311,000. The fair value of the equipment is $269,000. Prepare the journal entry, if any, to record the impairment loss. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit
Konopelski Corporation purchased McKenzie Company 3 years ago and at that time recorded goodwill of $755,000. The Division's net assets, including the goodwill, have a carrying amount of $1,754,000. The fair value of the division is estimated to be $1,001,000. PART A Account No Journal Entry Required PART B What is the carrying amount of goodwill after your assessment in Part A? $ Debit Credit
Swifty Company owns equipment that cost $927,000 and has accumulated depreciation of $391,400. The expected future net cash flows from the use of the asset are expected to be $565,000. The fair value of the equipment is $412,000. Prepare the journal entry, if any, to record the impairment loss. (If no entry is required, select "No entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. List debit entry before credit entry.) Account Titles and Explanation Loss on Impairment Accumulated Depreciation - Equipment Debit 123600 Credit 123600
Tamarisk Inc. owns equipment that cost $ 638,000 and has accumulated depreciation of $ 165,000. The expected future net cash flows from the use of the asset are expected to be $ 422,000. The fair value of the equipment is $ 365,000. Prepare the journal entry, if any, to record the impairment loss. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit
Waters Corporation purchased Johnson Company 3 years ago and at that time recorded goodwill of $400,000. The Johnson Division's net assets, including the goodwill, have a carrying amount of $800,000. The fair value of the division is estimated to be $1,000,000. Prepare Waters' journal entry, if necessary, to record impairment of the goodwill.
Monty Corp. exchanges old delivery equipment for new delivery equipment. The book value of the old delivery equipment is $37,200 (cost $67,200 less accumulated depreciation $30,000). Its fair value is $23,100, and cash of $6,000 is paid. Prepare the entry to record the exchange, assuming the transaction has commercial substance. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry isrequired,select "No Entry" for the account titles and enter O for the amounts.) Account Titles and Explanation Debit Credit
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