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help asap Palest Conpary pays 51,600,000 ts acquire 100% of the common stock of Tyrone Incorporabed it assumes that Tyrone's pkant assets (ruch as he
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Palest Conpary pays 51,600,000 ts acquire 100\% of the common stock of Tyrone Incorporabed it assumes that Tyrone's pkant assets (ruch as he fadory bulding and land) are undervalued by \$42, 000. The historical cont of the nit arsets acquited exctuding goodell, is equal to $1,503,500. Tyrune will be held as a divsion of Palest. The following intormation is avalabile 1 year affer the actustion of the subsidary company (i), fe reporting unif) I7. (Cick the icon to view the badance sheet) Pallest estrnased he fair (apcrabej) value of the division's net assets (eacluding goodwil) 1 rear after the dafe of auaition at 1,.605,260 Pread the maguremerts Recuirement a. Compute gaobwill sectrod on the dute of acqusition. that the far value of the Tyrene Dwvice with gecochetl 1 youe affer nty. f risted in the this biant) Shea Senn irensiment Teat Palest Compary pays 51,600.000 to acquire 100\% of the common stock of Tyrone incorporated. it assurtes that Tyrone's plant arsets (such as the factory bulding and land) are underialued by $42.000. The historical cost of the nat assets actuired, eecuding goodwil, is eqad to $1,503,500. Tyrone will be held as a division of Pallest. The following informaficn is avalabie 1 year afle the acopisition of the subsidary company fie, the reporling unit): EH (Cick the icon to view the balinge sheet) Palest estimaled the thir (apprasal) value of the divion's net assets (evoluding poodwli) 1 year afler the dafe of acqusiocn at 51, 605,200 Read the teginements Goodwill Rrquirement b. Detemine whether goodwal is imeaired assuming that the tar vilue of the Tyrone Dvisien wat goodull 1 year after acquasion is tqual to $2,002,000. Provide the impaiment joumal entry, if necded Econd debils first, then cedite fxatube explanations from any the first ine of the jouma ertry table and leave all remaining cets Fequinement c. Desermise whether poodwil is impaired assuming that the tar value of the Tyrone Divicich wen poodwill 1 year after in the taba berk.)Step by Step Solution
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