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Need the right answers only asap. On January 1, 20x1, Porta Corporation purchased Swick Company's net assets and assigned goodwill of $81,500 to Reporting Division
Need the right answers only asap.
On January 1, 20x1, Porta Corporation purchased Swick Company's net assets and assigned goodwill of $81,500 to Reporting Division K. The following assets and liabilities are assigned to Reporting Division K on the acquisition date: Required: On December 31, 20X3, Porta must test goodwill for impairment. Assume that the carrying value of the goodwill has not changed since 20X1. 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. $355,000. b. $295,000. c. $275,000 Step by Step Solution
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