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An acquirer made the following entry to report an acquisition: Tangible assets Customer lists Goodwill Liabilities Cash 4,000 600 1,000 2,000 3,600 Six months
An acquirer made the following entry to report an acquisition: Tangible assets Customer lists Goodwill Liabilities Cash 4,000 600 1,000 2,000 3,600 Six months after the acquisition, the customer lists are determined to be worthless. How is this information reported if (1) the new information relates to the value of the customer lists as of the date of acquisition, and (2) the new information relates to changes in value since acquisition? (1) $600 gain on acquisition in income a. b. (1) $600 increase in goodwill C. (1) $600 loss in income d. (1) $600 decrease in cash (2) $600 decrease in goodwill (2) $600 loss in income (2) $600 increase in goodwill (2) $600 loss in income
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