Goodwill : Goodwill is an intangible asset. It is defined as the excess of cost of an acquired company over the fair value of its net assets. Net assets are the difference between the total assets and the total liabilities. The value of the goodwill is the unique features of the company such as the location of the company, its efficient employees, and its reputation, which cannot be associated with any specific asset of the Company. Impairment of Goodwill: It is a situation that arises when the carrying value of the goodwill listed on the acquired company’s balance sheet, exceeds its fair market value. To determine : The amount of goodwill that resulted from the Incorporation H acquisition.

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Answer 1

Question

Chapter 11, Problem 11.32E

(1)

To determine

Goodwill:

Goodwill is an intangible asset. It is defined as the excess of cost of an acquired company over the fair value of its net assets. Net assets are the difference between the total assets and the total liabilities. The value of the goodwill is the unique features of the company such as the location of the company, its efficient employees, and its reputation, which cannot be associated with any specific asset of the Company.

Impairment of Goodwill:

It is a situation that arises when the carrying value of the goodwill listed on the acquired company’s balance sheet, exceeds its fair market value.

To determine: The amount of goodwill that resulted from the Incorporation H acquisition.

(2)

To determine

The amount of goodwill impairment loss that Corporation P should recognize at the end of 2018, if any.

(3)

To determine

To prepare: The journal entry to record the impairment loss.

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Answer 2

Question

Chapter 11, Problem 11.32E

(1)

To determine

Goodwill:

Goodwill is an intangible asset. It is defined as the excess of cost of an acquired company over the fair value of its net assets. Net assets are the difference between the total assets and the total liabilities. The value of the goodwill is the unique features of the company such as the location of the company, its efficient employees, and its reputation, which cannot be associated with any specific asset of the Company.

Impairment of Goodwill:

It is a situation that arises when the carrying value of the goodwill listed on the acquired company’s balance sheet, exceeds its fair market value.

To determine: The amount of goodwill that resulted from the Incorporation H acquisition.

(2)

To determine

The amount of goodwill impairment loss that Corporation P should recognize at the end of 2018, if any.

(3)

To determine

To prepare: The journal entry to record the impairment loss.

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Answer 3

Question

Chapter 11, Problem 11.32E

(1)

To determine

Goodwill:

Goodwill is an intangible asset. It is defined as the excess of cost of an acquired company over the fair value of its net assets. Net assets are the difference between the total assets and the total liabilities. The value of the goodwill is the unique features of the company such as the location of the company, its efficient employees, and its reputation, which cannot be associated with any specific asset of the Company.

Impairment of Goodwill:

It is a situation that arises when the carrying value of the goodwill listed on the acquired company’s balance sheet, exceeds its fair market value.

To determine: The amount of goodwill that resulted from the Incorporation H acquisition.

(2)

To determine

The amount of goodwill impairment loss that Corporation P should recognize at the end of 2018, if any.

(3)

To determine

To prepare: The journal entry to record the impairment loss.

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Answer 4

Question

Chapter 11, Problem 11.32E

(1)

To determine

Goodwill:

Goodwill is an intangible asset. It is defined as the excess of cost of an acquired company over the fair value of its net assets. Net assets are the difference between the total assets and the total liabilities. The value of the goodwill is the unique features of the company such as the location of the company, its efficient employees, and its reputation, which cannot be associated with any specific asset of the Company.

Impairment of Goodwill:

It is a situation that arises when the carrying value of the goodwill listed on the acquired company’s balance sheet, exceeds its fair market value.

To determine: The amount of goodwill that resulted from the Incorporation H acquisition.

(2)

To determine

The amount of goodwill impairment loss that Corporation P should recognize at the end of 2018, if any.

(3)

To determine

To prepare: The journal entry to record the impairment loss.

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Answer 5

Chapter 11, Problem 11.32E

(1)

To determine

Goodwill:

Goodwill is an intangible asset. It is defined as the excess of cost of an acquired company over the fair value of its net assets. Net assets are the difference between the total assets and the total liabilities. The value of the goodwill is the unique features of the company such as the location of the company, its efficient employees, and its reputation, which cannot be associated with any specific asset of the Company.

Impairment of Goodwill:

It is a situation that arises when the carrying value of the goodwill listed on the acquired company’s balance sheet, exceeds its fair market value.

To determine: The amount of goodwill that resulted from the Incorporation H acquisition.

(2)

To determine

The amount of goodwill impairment loss that Corporation P should recognize at the end of 2018, if any.

(3)

To determine

To prepare: The journal entry to record the impairment loss.

Answer 6

Chapter 11, Problem 11.32E

(1)

To determine

Goodwill:

Goodwill is an intangible asset. It is defined as the excess of cost of an acquired company over the fair value of its net assets. Net assets are the difference between the total assets and the total liabilities. The value of the goodwill is the unique features of the company such as the location of the company, its efficient employees, and its reputation, which cannot be associated with any specific asset of the Company.

Impairment of Goodwill:

It is a situation that arises when the carrying value of the goodwill listed on the acquired company’s balance sheet, exceeds its fair market value.

To determine: The amount of goodwill that resulted from the Incorporation H acquisition.

Answer 7

Chapter 11, Problem 11.32E

(1)

To determine

Goodwill:

Goodwill is an intangible asset. It is defined as the excess of cost of an acquired company over the fair value of its net assets. Net assets are the difference between the total assets and the total liabilities. The value of the goodwill is the unique features of the company such as the location of the company, its efficient employees, and its reputation, which cannot be associated with any specific asset of the Company.

Impairment of Goodwill:

It is a situation that arises when the carrying value of the goodwill listed on the acquired company’s balance sheet, exceeds its fair market value.

To determine: The amount of goodwill that resulted from the Incorporation H acquisition.

Answer 8

(2)

To determine

The amount of goodwill impairment loss that Corporation P should recognize at the end of 2018, if any.

Answer 9

(2)

To determine

The amount of goodwill impairment loss that Corporation P should recognize at the end of 2018, if any.

Answer 10

(3)

To determine

To prepare: The journal entry to record the impairment loss.

Answer 11

(3)

To determine

To prepare: The journal entry to record the impairment loss.

Answer 12

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Answer 13

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Answer 14

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Answer 15

Ch. 11 - Prob. 11.1Q Ch. 11 - Depreciation is a process of cost allocation, not...Ch. 11 - Identify and define the three characteristics of...Ch. 11 - Discuss the factors that influence the estimation...Ch. 11 - What is meant by depreciable base? How is it...Ch. 11 - Prob. 11.6Q Ch. 11 - Prob. 11.7Q Ch. 11 - Why are time-based depreciation methods used more...Ch. 11 - Prob. 11.9Q Ch. 11 - Prob. 11.10Q

Solution Summary: The author defines goodwill as the excess of cost of an acquired company over the fair value of its net assets.

Concept explainers

The amount of goodwill impairment loss that Corporation P should recognize at the end of 2018, if any.

To prepare: The journal entry to record the impairment loss.

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Chapter 11 Solutions