Question
8. On 12/31/X2, Brenda Corporation purchased Kyle Inc. for $3,400,000. Kyle had one asset, a trademark, whose fair value ($45,000) exceeded its book value ($15,000)
8. On 12/31/X2, Brenda Corporation purchased Kyle Inc. for $3,400,000. Kyle had one asset, a trademark, whose fair value ($45,000) exceeded its book value ($15,000) by $30,000. The trademark has a remaining useful life of five years. Goodwill was also recorded in this purchase in the amount of $146,000. Kyle continued to operate after the purchase, and now on 12/31/X3, Brenda is preparing consolidated statements for the year. Independent appraisers now believe Kyles trademark is worth $50,000. Brendas independent auditors believe that the goodwill has been impaired slightly and is now worth $120,000. At what amounts should the trademark and goodwill be shown on Brendas consolidated balance sheet on 12/31/X3? a. Trademark$36,000, Goodwill$120,000 b. Trademark$30,000, Goodwill$146,000 c. Trademark$50,000, Goodwill$120,000 d. Trademark$50,000, Goodwill$146,000
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