Question
DGF Company provided the following information: Fair value of the reporting unit, including goodwill $2,600,000 Book value of reporting unit, excluding goodwill $2,200,000 Add: Carrying
DGF Company provided the following information:
Fair value of the reporting unit, including goodwill $2,600,000
Book value of reporting unit, excluding goodwill $2,200,000
Add: Carrying value of goodwill 250,000
Carrying value of the reporting unit, including goodwill $2,450,000
The qualitative assessment of goodwill is completed and it is more likely than not that goodwill is impaired. Describe the process for determining if DGF needs to record a goodwill impairment loss and prepare any required journal entries.
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Intermediate Accounting
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Nicola M. Young, Irene M. Wiecek, Bruce J. McConomy
11th Canadian edition Volume 2
1119048540, 978-1119048541
