Question
Local Craft Designs, Inc. reported goodwill at $600,000 related to its Central Avenue Division. The fair value of Central Avenue is $2,500,000. The carrying value
Local Craft Designs, Inc. reported goodwill at $600,000 related to its Central Avenue Division. The fair value of Central Avenue is $2,500,000. The carrying value of Central Avenue's net assets, excluding goodwill, is reported at $2,100,000 and appraised at $2,310,000. Determine whether goodwill is impaired and make any journal entry necessary to record the impairment loss.
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Managerial Accounting
Authors: Karen W. Braun, Wendy M. Tietz
5th edition
134128524, 978-0134128528
