Question
Mesa Corporation purchased Kwick Company's net assets and assigned goodwill of $82,100 to Reporting Division K. The following assets and liabilities are assigned to Reporting
Mesa Corporation purchased Kwick Company's net assets and assigned goodwill of $82,100 to Reporting Division K. The following assets and liabilities are assigned to Reporting Division K:
| Carrying Amount | Fair Value | ||||
| Cash | $ | 16,100 | $ | 16,100 | |
| Inventory | 58,100 | 73,100 | |||
| Equipment | 191,000 | 211,000 | |||
| Goodwill | 82,100 | ||||
| Accounts Payable | 32,100 | 32,100 |
| Required: | |
| Determine the amount of goodwill to be reported for Division K and the amount of goodwill impairment to be recognized, if any, if Division K's fair value is determined to be a. $361,000, b. $301,000 and c. $281,000. | |
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Managerial Accounting Tools for business decision making
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
5th edition
470506954, 471345881, 978-0470506950, 9780471345886, 978-0470477144
