Question
Following its acquisition of the net assets of Dan Company, Epire Company assigned goodwill of $60,000 to one of the reporting divisions. Information for this
Following its acquisition of the net assets of Dan Company, Epire Company assigned goodwill of $60,000 to one of the reporting divisions. Information for this division follows:
|
| Carrying Amount | Fair Value |
| Cash | 20,000 | 20,000 |
| Inventory | 35,000 | 40,000 |
| Equipment | 125,000 | 160,000 |
| Goodwill | 60,000 |
|
| Accounts Payable | 30,000 | 30,000 |
Based on the preceding information, what amount of goodwill impairment will be recognized for this division if its fair value is determined to be $195,000? A. $5,000 B. $30,000 C. $60,000 D. $55,000
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Accounting For The Environment
Authors: Rob Gray, Jan Bebbington
2nd Edition
0761971378, 978-0761971375
