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Arcadia, Incorporated, acquired 1 0 0 percent of the voting shares of Bruno Company on January 1 , 2 0 2 3 . In exchange,
Arcadia, Incorporated, acquired percent of the voting shares of Bruno Company on January In exchange, Arcadia paid
$ in cash and issued shares of its own $ par value common stock. On this date, Arcadia's stock had a fair value of
$ per share. The combination is a statutory merger with Bruno subsequently dissolved as a legal corporation. Bruno's assets and
liabilities are assigned to a new reporting unit.
The following shows fair values for the Bruno reporting unit for January along with respective carrying amounts on December
Note: Parentheses indicate a credit balance.
Requlred:
a Prepare Arcadia's journal entry to record the assets acquired and the liabilities assumed in the Bruno merger on January
b On December Arcadia opts to forgo any goodwill impairment qualitative assessment and estimates that the total fair value
of the entire Bruno reporting unit is $ What amount of goodwill impairment, if any, should Arcadia recognize on its
income statement?
Answer is complete but not entirely correct.
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Required B
On December Arcadia opts to forgo any goodvill impairment qualitative assessment and estimates that the total
fair value of the entire Bruno reporting unit is $ What amount of goodwill impairment, if any, should Arcadia
recognize on its income statement?
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