How is the goodwill impairment calculated? I thought it was by adding assets and subtracting the accounts payable for net assets. Then adding goodwill and subtracting the fair value -for Ba X* CSU-GlobalO McGraw-Hill Connect ACT506S Question 1- Module 1 Critical T Xb My Math Solver | bartleezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Flms.mheducation.com%252FmghmiddleZoomO DocuSignntritical Thinking Assignment 6SavedThe fair values of assets and liabilities held by three reporting units and other information related to the reporting units owned byProver Company are as follows:Reporting UnitAB.Cash & ReceivablesInventory$ 43,000 $115, 100 $ 29,10087,30029, 10058, 20015,200145, 500Land44, 300BuildingsEquipmentAccounts PayableFair Value of Reporting UnitCarrying Value of InvestmentGoodwill Included in Carrying Value228, 000136, 80091, 200668,800770, 00090,300152,000121,600212,80060,800608,000638,400106,40076,00015,200402,800440,80060,800Required:a. Determine the amount, if any, that Prover should report as a goodwill impairment for the current period.b. Determine the amount of goodwill that Prover should report in its current financial statements.Complete this question by entering your answers in the tabs below.Required ARequired BDetermine the amount, if any, that Prover should report as a goodwill impairment for the current period.Goodwill impairmentequiredARequired B >< Prev3 of 3 ENext>I RJ A Dlyp

Goodwill impairment: Goodwill impairment is a charge recorded when goodwill carrying value exceeds…

The fair values of assets and liabilities held by three reporting units and other information related to the reporting units owned by Prover Company are as follows: Reporting Unit A C. Cash & Receivables Inventory Land Buildings Equipment Accounts Payable Fair Value of Reporting Unit Carrying Value of Investment Goodwill Included in Carrying Value 87,300 29, 100 152,000 212,800 60,800 608,000 638,400 106,400 $ 43,000 $115, 100 $ 29,100 58, 200 15,200 121,600 76,000 15,200 402,800 440,800 60,800 145,500 44, 300 228,000 136,800 91, 200 668, 800 770,000 90, 300 Required: a. Determine the amount, if any, that Prover should report as a goodwill impairment for the current period. b. Determine the amount of goodwill that Prover should report in its current financial statements. Complete this question by entering your answers in the tabs below. Required A Required B Determine the amount, if any, that Prover should report as a goodwill impairment for the current period. Goodwill impairment Required A Required B >

The fair values of assets and liabilities held by three reporting units and other information related to the reporting units owned by Prover Company are as follows: Reporting Unit A C. Cash & Receivables Inventory Land Buildings Equipment Accounts Payable Fair Value of Reporting Unit Carrying Value of Investment Goodwill Included in Carrying Value 87,300 29, 100 152,000 212,800 60,800 608,000 638,400 106,400 $ 43,000 $115, 100 $ 29,100 58, 200 15,200 121,600 76,000 15,200 402,800 440,800 60,800 145,500 44, 300 228,000 136,800 91, 200 668, 800 770,000 90, 300 Required: a. Determine the amount, if any, that Prover should report as a goodwill impairment for the current period. b. Determine the amount of goodwill that Prover should report in its current financial statements. Complete this question by entering your answers in the tabs below. Required A Required B Determine the amount, if any, that Prover should report as a goodwill impairment for the current period. Goodwill impairment Required A Required B >

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Which of the following is not a fundamental issue in accounting for property, plant and equipment? Impairment losses Determination of fair value Recognition of assets Determination carrying amounts
The difference between book value of the asset with the proceeds received from its sale, will result in:
An impairment loss for goodwill is calculated as the difference between ________. Group of answer choices the fair value of the reporting unit (including goodwill) and the book value of the reporting unit (including goodwill) the implied fair value of goodwill and its book value the fair value of the reporting unit (including goodwill) and the fair value of its net assets (without goodwill) the book value of the reporting unit (including goodwill) and the book value of its net assets (without goodwill)
Which of the following factors, if present, would indicate that a transaction is not a contribution? a. The resource provider entered into the transaction voluntarily. b. The resource provider received value in exchange. c. The transfer of assets was unconditional. d. The organization has discretion in the use of the assets received.
Describe the steps to record non monetary asset exchange.
When an expenditure is made and it is treated as an expense but should have been capitalized, the resulting impact in the year of the expenditure would be: A. Assets would be overstated, net income would be understated. B. Both the assets and net income would not be affected. C. Assets would be understated, net income would be understated. D. Assets would be understated, net income would be overstated.
Once an asset has been determined to be impaired, the amount of impairment is measured as: The asset's cost minus the fair value The asset's future cash inflows minus the book value The asset's book value minus the fair value The asset's cost minus the book value
which of the following statements in relation to the cost of the asset is true? A. all of the statements are true B. The cost includes cash equivalent paid C. The cost includes the fair value of any non monetary consideration given to acquire an asset D. The cost includes nonrefundable purchase taxes
in calculating an impairment loss, which TWO of the following are correct? Assets should be carried at the higher of their carrying amount and recoverable amount Recoverable amount is the higher of value in use and fair value less costs of disposal Recoverable amount is the lower of value in use and fair value less costs of disposal Assets should be carried at the lower of their carrying amount and recoverable amount
What is an impairment loss? A ) The amount by which the carrying amount of an asset exceeds the book value B ) The amount by which the carrying amount of an asset exceeds the recoverable amount C ) The difference between the fair value of an asset and the net realisable value of the asset D ) The amount by which the market value of an asset exceeds the net present value
Which of the following is not a criterion that must be met for an item to be classified as a liability? A certain cash payment will occur in the future. A sacrifice will require the entity’s assets or services. There is a probable future sacrifice. There is a present obligation that results from a past transaction.
All financial assets are initially measured at fair value plus transaction costs, except A. Amortized cost C.None of these C. Fair value through profit and loss D. Fair value through OCI