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Presented below are balance sheet accounts related to North Division of Smith Company as of 12/31 of the current fiscal year. Smith Company acquired North
Presented below are balance sheet accounts related to North Division of Smith Company as of 12/31 of the current fiscal year. Smith Company acquired North Division at the beginning of the year.
Cash $170,000
Receivables $340,000
Property Plant Equipment $600,000
Goodwill $205,000
Notes Payable $300,000
The fair value of North Division including goodwill is $820,000 at 12/31. How much impairment loss should North Division recognize at 12/31?
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