Answered step by step
Verified Expert Solution
Question
...
1 Approved Answer
Information has been collected regarding Pindea companys cash-generating until that includes goodwill. At December 31, 2018, the assets of the Pindea companys cash-generating unit are
- Information has been collected regarding Pindea companys cash-generating until that includes goodwill. At December 31, 2018, the assets of the Pindea companys cash-generating unit are shown as follows on the companys statement of financial position.
Cost Accumu Depre NBV
Goodwill $25,000 $0 $25,000
Equipment 126,500 30,850 95,650
Building 505,000 200,150 304,850
Patent rights 30,000 18,500 11,500
$ 686,500 $ 249,500 $ 437,00
An impairment test indicates that the fair value of Pineda Companys cash-generating units assets is $350,000. The assets are not separable they must be operated or sold together as a group.
Required
Indicate the net book value of each asset after the write down and prepare an adjusting journal entry to record the impairment.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started