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On Jan 2019, Almond, Inc. decides that it needs a parts division to supplement its existing tractor distributorship. The president of Feng decided to purchase
On Jan 2019, Almond, Inc. decides that it needs a parts division to supplement its existing tractor distributorship. The president of Feng decided to purchase TA, Inc. for E 450 000. Property, Plant, and Equipment 200,000 Patents 20,000 Inventory 120,000 Accounts Receivables 35,000 Cash 40,000 Equity 375,000 Liablities 40,000 The recorded amounts are all current fair value except the Property, plant and Equipment (fair Value 220,000) Required 1. Prepare the entry to record the purchases (4 marks) 2. Prepare the December 31 to record the impairment of the goodwill if the recoverable amount is 50,000
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