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11. In 2015, Hume, Inc. purchased Rousseau Metals for $3 million. At December 31, 2018, the Rousseau division reported net assets of $3,300,000 (including $1,700,000
11. In 2015, Hume, Inc. purchased Rousseau Metals for $3 million. At December 31, 2018, the Rousseau division reported net assets of $3,300,000 (including $1,700,000 of goodwill). Hume reviewed the Rousseau division and determined that expected net future cash flows equal $2,500,000 and the fair value is estimated to be only $1,800,000. What entry should Hume record concerning the Rousseau division on December 31, 2018? A. No entry is needed. B. Loss on impairment 1,500,000 Goodwill 1,500,000 C. Loss on impairment 1,200,000 Goodwill 1,200,000 D. Loss on impairment 1,500,000 Prorata deduction of all assets 1,500,000
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