Goodwill : It is the excess payment made over and above the fair value of assets acquired by the parent company to the subsidiary company against the assets and liabilities acquired. Amount of goodwill to be reported and amount of goodwill impairment, if any, if the total fair value of the reporting unit is estimated to be $ 580 , 000

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Answer 1

Question

Chapter 1, Problem 1.18E

a.

To determine

Concept Introduction:

Goodwill: It is the excess payment made over and above the fair value of assets acquired by the parent company to the subsidiary company against the assets and liabilities acquired.

Amount of goodwill to be reported and amount of goodwill impairment, if any, if the total fair value of the reporting unit is estimated to be $580,000

b.

To determine

Concept Introduction:

Goodwill: It is the excess payment made over and above the fair value of assets acquired by the parent company to the subsidiary company against the assets and liabilities acquired.

Amount of goodwill to be reported and amount of goodwill impairment, if any, if the total fair value of the reporting unit is estimated to be $540,000

c.

To determine

Concept Introduction:

Goodwill: It is the excess payment made over and above the fair value of assets acquired by the parent company to the subsidiary company against the assets and liabilities acquired.

Amount of goodwill to be reported and amount of goodwill impairment, if any, if the total fair value of the reporting unit is estimated to be $500,000

d.

To determine

Concept Introduction:

Goodwill: It is the excess payment made over and above the fair value of assets acquired by the parent company to the subsidiary company against the assets and liabilities acquired.

Amount of goodwill to be reported and amount of goodwill impairment, if any, if the total fair value of the reporting unit is estimated to be $500,000

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Naughty Company assembles the following data relative to a certain entity in determining the amount to be paid for net assets and goodwill: Assets at fair value before goodwill 2, 600, 000Liabilities 900, 000Shareholders’ equity 1, 700, 000 Net earnings after elimination of unusual or infrequent items:2008 200, 0002009 230, 0002010 300, 0002011 250, 0002012 270, 000 Required:Calculate the amount of goodwill under the following:1. Average earnings are capitalized at 10%2. A return of 8% is considered normal on net assets at fair value. Excess earnings are capitalized at 15%.3. A return of 10% is considered normal on net assets at fair value. Goodwill is measured at 5 years excess earnings.4. A return of 10% is considered normal on net assets at fair value. Excess earnings are expected to…

On December 31, an entity had a reporting unit that had a book value of $3,450,000, including goodwill of $225,000. As part of its annual review of goodwill impairment, the entity determined that the fair value of the reporting unit including goodwill was $3,310,000. What is the goodwill impairment loss to be reported on December 31? a. $0 b. $85,000 c. $140,000 d. $225,000

With respect to goodwill related to acquisition, an impairment is a one-step process considering the entire entity O is a two-step process which analyses each business reporting unit of the entity. will be amortized over the remaining useful life of the asset occurs when asset values are adjusted to fair value in an acquisition. roblems surge on

Answer 2

Question

Chapter 1, Problem 1.18E

a.

To determine

Concept Introduction:

Goodwill: It is the excess payment made over and above the fair value of assets acquired by the parent company to the subsidiary company against the assets and liabilities acquired.

Amount of goodwill to be reported and amount of goodwill impairment, if any, if the total fair value of the reporting unit is estimated to be $580,000

b.

To determine

Concept Introduction:

Goodwill: It is the excess payment made over and above the fair value of assets acquired by the parent company to the subsidiary company against the assets and liabilities acquired.

Amount of goodwill to be reported and amount of goodwill impairment, if any, if the total fair value of the reporting unit is estimated to be $540,000

c.

To determine

Concept Introduction:

Goodwill: It is the excess payment made over and above the fair value of assets acquired by the parent company to the subsidiary company against the assets and liabilities acquired.

Amount of goodwill to be reported and amount of goodwill impairment, if any, if the total fair value of the reporting unit is estimated to be $500,000

d.

To determine

Concept Introduction:

Goodwill: It is the excess payment made over and above the fair value of assets acquired by the parent company to the subsidiary company against the assets and liabilities acquired.

Amount of goodwill to be reported and amount of goodwill impairment, if any, if the total fair value of the reporting unit is estimated to be $500,000

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Answer 3

Question

Chapter 1, Problem 1.18E

a.

To determine

Concept Introduction:

Goodwill: It is the excess payment made over and above the fair value of assets acquired by the parent company to the subsidiary company against the assets and liabilities acquired.

Amount of goodwill to be reported and amount of goodwill impairment, if any, if the total fair value of the reporting unit is estimated to be $580,000

b.

To determine

Concept Introduction:

Goodwill: It is the excess payment made over and above the fair value of assets acquired by the parent company to the subsidiary company against the assets and liabilities acquired.

Amount of goodwill to be reported and amount of goodwill impairment, if any, if the total fair value of the reporting unit is estimated to be $540,000

c.

To determine

Concept Introduction:

Goodwill: It is the excess payment made over and above the fair value of assets acquired by the parent company to the subsidiary company against the assets and liabilities acquired.

Amount of goodwill to be reported and amount of goodwill impairment, if any, if the total fair value of the reporting unit is estimated to be $500,000

d.

To determine

Concept Introduction:

Goodwill: It is the excess payment made over and above the fair value of assets acquired by the parent company to the subsidiary company against the assets and liabilities acquired.

Amount of goodwill to be reported and amount of goodwill impairment, if any, if the total fair value of the reporting unit is estimated to be $500,000

Expert Solution & Answer

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Answer 4

Question

Chapter 1, Problem 1.18E

a.

To determine

Concept Introduction:

Goodwill: It is the excess payment made over and above the fair value of assets acquired by the parent company to the subsidiary company against the assets and liabilities acquired.

Amount of goodwill to be reported and amount of goodwill impairment, if any, if the total fair value of the reporting unit is estimated to be $580,000

b.

To determine

Concept Introduction:

Goodwill: It is the excess payment made over and above the fair value of assets acquired by the parent company to the subsidiary company against the assets and liabilities acquired.

Amount of goodwill to be reported and amount of goodwill impairment, if any, if the total fair value of the reporting unit is estimated to be $540,000

c.

To determine

Concept Introduction:

Goodwill: It is the excess payment made over and above the fair value of assets acquired by the parent company to the subsidiary company against the assets and liabilities acquired.

Amount of goodwill to be reported and amount of goodwill impairment, if any, if the total fair value of the reporting unit is estimated to be $500,000

d.

To determine

Concept Introduction:

Goodwill: It is the excess payment made over and above the fair value of assets acquired by the parent company to the subsidiary company against the assets and liabilities acquired.

Amount of goodwill to be reported and amount of goodwill impairment, if any, if the total fair value of the reporting unit is estimated to be $500,000

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Answer 5

Chapter 1, Problem 1.18E

a.

To determine

Concept Introduction:

Goodwill: It is the excess payment made over and above the fair value of assets acquired by the parent company to the subsidiary company against the assets and liabilities acquired.

Amount of goodwill to be reported and amount of goodwill impairment, if any, if the total fair value of the reporting unit is estimated to be $580,000

b.

To determine

Concept Introduction:

Goodwill: It is the excess payment made over and above the fair value of assets acquired by the parent company to the subsidiary company against the assets and liabilities acquired.

Amount of goodwill to be reported and amount of goodwill impairment, if any, if the total fair value of the reporting unit is estimated to be $540,000

c.

To determine

Concept Introduction:

Goodwill: It is the excess payment made over and above the fair value of assets acquired by the parent company to the subsidiary company against the assets and liabilities acquired.

Amount of goodwill to be reported and amount of goodwill impairment, if any, if the total fair value of the reporting unit is estimated to be $500,000

d.

To determine

Concept Introduction:

Goodwill: It is the excess payment made over and above the fair value of assets acquired by the parent company to the subsidiary company against the assets and liabilities acquired.

Amount of goodwill to be reported and amount of goodwill impairment, if any, if the total fair value of the reporting unit is estimated to be $500,000

Answer 6

Chapter 1, Problem 1.18E

a.

To determine

Concept Introduction:

Goodwill: It is the excess payment made over and above the fair value of assets acquired by the parent company to the subsidiary company against the assets and liabilities acquired.

Amount of goodwill to be reported and amount of goodwill impairment, if any, if the total fair value of the reporting unit is estimated to be $580,000

Answer 7

Chapter 1, Problem 1.18E

a.

To determine

Concept Introduction:

Goodwill: It is the excess payment made over and above the fair value of assets acquired by the parent company to the subsidiary company against the assets and liabilities acquired.

Amount of goodwill to be reported and amount of goodwill impairment, if any, if the total fair value of the reporting unit is estimated to be $580,000

Answer 8

b.

To determine

Concept Introduction:

Goodwill: It is the excess payment made over and above the fair value of assets acquired by the parent company to the subsidiary company against the assets and liabilities acquired.

Amount of goodwill to be reported and amount of goodwill impairment, if any, if the total fair value of the reporting unit is estimated to be $540,000

Answer 9

b.

To determine

Concept Introduction:

Goodwill: It is the excess payment made over and above the fair value of assets acquired by the parent company to the subsidiary company against the assets and liabilities acquired.

Amount of goodwill to be reported and amount of goodwill impairment, if any, if the total fair value of the reporting unit is estimated to be $540,000

Answer 10

c.

To determine

Concept Introduction:

Goodwill: It is the excess payment made over and above the fair value of assets acquired by the parent company to the subsidiary company against the assets and liabilities acquired.

Amount of goodwill to be reported and amount of goodwill impairment, if any, if the total fair value of the reporting unit is estimated to be $500,000

Answer 11

c.

To determine

Concept Introduction:

Goodwill: It is the excess payment made over and above the fair value of assets acquired by the parent company to the subsidiary company against the assets and liabilities acquired.

Amount of goodwill to be reported and amount of goodwill impairment, if any, if the total fair value of the reporting unit is estimated to be $500,000

Answer 12

d.

To determine

Concept Introduction:

Goodwill: It is the excess payment made over and above the fair value of assets acquired by the parent company to the subsidiary company against the assets and liabilities acquired.

Amount of goodwill to be reported and amount of goodwill impairment, if any, if the total fair value of the reporting unit is estimated to be $500,000

Answer 13

d.

To determine

Concept Introduction:

Goodwill: It is the excess payment made over and above the fair value of assets acquired by the parent company to the subsidiary company against the assets and liabilities acquired.

Amount of goodwill to be reported and amount of goodwill impairment, if any, if the total fair value of the reporting unit is estimated to be $500,000

Answer 14

Expert Solution & Answer

Answer 15

Expert Solution & Answer

Answer 16

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Answer 17

Ch. 1 - What types of circumstances would encourage...Ch. 1 - How would the decision to dispose of a segment of...Ch. 1 - Prob. 1.3Q Ch. 1 - Prob. 1.4Q Ch. 1 - Prob. 1.5Q Ch. 1 - Prob. 1.6Q Ch. 1 - Prob. 1.7Q Ch. 1 - Prob. 1.8Q Ch. 1 - Prob. 1.9Q Ch. 1 - Prob. 1.10Q

Solution Summary: The author explains that goodwill is the excess payment made over and above the fair value of assets acquired by the parent company to the subsidiary company against the assets and liabilities acquired.

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