Question
Blossoms Company bought Special Products Division in 2020 and appropriately recorded $737000 of goodwill related to the purchase. On December 31, 2021, the fair value
Blossoms Company bought Special Products Division in 2020 and appropriately recorded $737000 of goodwill related to the purchase. On December 31, 2021, the fair value of Special Products Division is $5400000 and it is carried on Blossoms books for a total of $4500000, including the goodwill. An analysis of Special Products Divisions assets indicates that goodwill of $587000 exists on December 31, 2021. What goodwill impairment should be recognized by Blossoms in 2021?
a. $0.
b. $737000.
c. $900000.
d. $163000.
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Financial Accounting And Reporting QandA 2020
Authors: ACA Simplified
1st Edition
1661682820, 978-1661682828
