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Please solve completely. Will rate the answer for sure. E 1-15 Impairment of Goodwill Mesa Corporation purchased Kwick Company's net assets and assigned goodwill of
Please solve completely. Will rate the answer for sure.
E 1-15 Impairment of Goodwill Mesa Corporation purchased Kwick Company's net assets and assigned goodwill of $80,000 to Reporting Division K. The following assets and liabilities are assigned to Reporting Division K: Carrying Fair Value Amount Cash $14,000 $14,000 Inventory 56,000 71,000 Equipment 170,000 190,000 Goodwill 80,000 Accounts Payable 30,000 30,000 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 of the reporting unit is determined to be: a. $340,000 b. $280,000 c. $260,000 E1-15 Impairment of Goodwill a. Compare FV of RU to CV of RU: Value of Goodwill: _Goodwill Impairment Loss: b. Compare FV of RU to CV of RU: Value of Goodwill: _Goodwill Impairment Loss: c. Compare FV of RU to CV of RU: Value of Goodwill: _Goodwill Impairment LossStep by Step Solution
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