Question
Carla Vistas Company bought Special Products Division in 2017 and appropriately recorded $745000 of goodwill related to the purchase. On December 31, 2018, the fair
Carla Vistas Company bought Special Products Division in 2017 and appropriately recorded $745000 of goodwill related to the purchase. On December 31, 2018, the fair value of Special Products Division is $5800000 and it is carried on Carla Vistas books for a total of $4900000, including the goodwill. An analysis of Special Products Divisions assets indicates that goodwill of $603000 exists on December 31, 2018. What goodwill impairment should be recognized by Carla Vistas in 2018?
| $461000. |
|
| $0. |
|
| $297000. |
|
| $71000. |
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Financial Accounting
Authors: Walter T. Harrison Jr., Charles T. Horngren, C. William Thomas, W. Morley Lemon, Catherine Seguin, Sandra Robertson Lemon
4th Canadian Edition
0131384333, 9780131384330
