Question
hey could you please provide journal entry for the following and help in finding net carring amoubt for goodwill by both methods and proper entires
hey could you please provide journal entry for the following and help in finding net carring amoubt for goodwill by both methods and proper entires explanation
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Sheffield Corporation has three divisions. One division, Pritt Products, was purchased four years ago for $2 million and has been identified as a reporting unit. Unfortunately, it has experienced operating losses over the past three quarters and management is reviewing the reporting unit to determine whether there has been an impairment of goodwill. The carrying amounts of Pritt's net assets, including the associated goodwill of $877,000, are listed below. Assume that Pritt's reporting unit is also a cash-generating unit under IFRS. Pritt Reporting Unit-Carrying Amount of Net Assets Including Goodwill Cash $190,000 Receivables 326,000 Inventory 707,000 Property, plant, and equipment (net) 870,000 Goodwill 877.000 Less: Accounts and notes payable (491,000) Net assets, at carrying amounts $2,479,000 SUPPORT
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