Assume that Flounder is a private entity and tested its goodwill for impairment on December $31,2024.$ Management determined On July $1,2023,$ Flounder Corporation purchased the net assets of Soorya Company by paying $$453,000$ cash and issuing a $$54,900$

note payable to Soorya. At July $1,2023,$ the statement of financial position of Soorya was as follows:

The recorded amounts all approximate current values except for land $($worth $$61,600),$ inventory $($worth $$132,400),$ and trademarks

$($worthless$).$ The receivables are shown net of an allowance for expected credit losses of $$13,000.$ The amounts for buildings,

equipment, and trademarks are shown net of accumulated amortization of $$22,000,$$$27,000,$ and $$47,000,$ respectively.

Prepare the July $1,2023$ entry for Flounder to record the purchase. $($Credit account titles are automatically indented when the

amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles and enter O for the amounts. List

all debit entries before credit entries.$)$

July $1,2023$ Based on part $($a$),$ assume now that Flounder is a public entity and tested its goodwill for impairment on December $31,2024.$ The

cash$-$generating unit's values $($including goodwill$)$ are as follows:

Determine if there is any impairment and prepare any necessary entry on December $31,2024.($Credit account titles are

automatically indented when the amount is entered. Do not indent manually. If no entry is required, select $"$No entry" for the account titles

and enter $0$ for the amounts. List debit entry before credit entry.$)$

Date

Account Titles and Explanation

Debit

Credit

Dec. $31,2024$

eTextbook and Media

that the reporting unit's carrying amount $($including goodwill$)$ was $$544,000$ and that the reporting unit's fair value $($including

goodwill$)$ was $$453,000.$ Determine if there is any impairment and prepare any necessary entry on December $31,2024.$ Flounder

applies ASPE. $($Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is

required, select $"$No entry" for the account titles and enter O for the amounts. List debit entry before credit entry.$)$

Date

Account Titles and Explanation

Debit

Credit

Dec. $31,2024$

eTextbook and Media

Question Part Score