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On July 1, 2020, Cullumber Corporation acquired Ivanhoe Company for $828,000 cash. At the time of purchase, Ivanhoe's balance sheet showed assets of $713,000 and
On July 1, 2020, Cullumber Corporation acquired Ivanhoe Company for $828,000 cash. At the time of purchase, Ivanhoe's balance sheet showed assets of $713,000 and liabilities of $230,000. The fair value of Ivanhoe's assets is estimated to be $874,000. Compute the amount of goodwill acquired by Cullumber. Amount of goodwill $ On December 31, the fair value of Ivanhoe is estimated to be $662,400. The carrying value of Ivanhoe's net identifiable assets, including the goodwill, at year-end is $690,000. Prepare Cullumber's journal entry, if necessary, to record impairment of goodwill. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit
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