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answer all the blanks please Assume that ayisiyiniwiwinak Corp. paid $30 million to purchase 10 -Trees Inc. Below is a summary of the balance sheet
answer all the blanks please
Assume that ayisiyiniwiwinak Corp. paid $30 million to purchase 10 -Trees Inc. Below is a summary of the balance sheet of 10-Trees Inc. at the time of the ayisiyiniwiwinak Corp. acquisition (amounts are given in million \$). The fair value of 10-Tree Inc.'s non-current assets was higher than the book value and amounted to $37 at that time. Requirement 1: Based on the information provided above, fill Blanks 1 and 2. Blank \#1: What is the goodwill resulting from this transaction? Enter your response as a plain number (no \$-signs or decimals). Blank \#2: Assume that after a year, ayisiyiniwiwinak Corp. recognized a goodwill impairment loss of $1 million. On which financial statement is the impairment loss recorded? (Hint: This relates to the debit account of the journal record of the impairment loss Blank \#1: What is the goodwill resulting from this transaction? Enter your response as a plain number (no \$-signs or decimals). Blank \#2: Assume that after a year, ayisiyiniwiwinak Corp. recognized a goodwill impairment loss of $1 million. On which financial statement is the impairment loss recorded? (Hint: This relates to the debit account of the journal record of the impairment loss recognition) Requirement 2: Building on the information provided above, assume that your manager asks you (the accountant) to ignore the fair value of 10-Trees' non-current assets and move ahead with the book values. She argues that no one gets harmed by doing so and that therefore it is ethical. She also refers to this being a common (informal) practice in your company. Blank \#3: Discuss your position. Do you agree with the manager's position? Would you go ahead as instructed by the manager? Explain your decision (3-4 sentences). Blank \# 1 Blank \# 2 Step by Step Solution
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