Q1

An appraisal indicated that the fair value of the inventory was $467,000 and the fair value of the plant assets was $1,450,000. The agreed purchase price was $2,700,000, and this amount was paid in cash to the previous owners of Brighton Company. Required: a. Prepare the entry to record the purchase of Brighton Company. b. Assume that the carrying amount of Brighton Company division's net assets, including goodwill is $2,900,000. The recoverable amount of the division is estimated to be $ 2,500,000. Prepare the journal entry to record the impairment loss (If any) on December 31, 2020. For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). An appraisal indicated that the fair value of the inventory was $467,000 and the fair value of the plant assets was $1,450,000. The agreed purchase price was $2,700,000, and this amount was paid in cash to the previous owners of Brighton Company. Required: a. Prepare the entry to record the purchase of Brighton Company. b. Assume that the carrying amount of Brighton Company division's net assets, including goodwill is $2,900,000. The recoverable amount of the division is estimated to be $ 2,500,000. Prepare the journal entry to record the impairment loss (If any) on December 31, 2020. For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). An appraisal indicated that the fair value of the inventory was $467,000 and the fair value of the plant assets was $1,450,000. The agreed purchase price was $2,700,000, and this amount was paid in cash to the previous owners of Brighton Company. Required: a. Prepare the entry to record the purchase of Brighton Company. b. Assume that the carrying amount of Brighton Company division's net assets, including goodwill is $2,900,000. The recoverable amount of the division is estimated to be $ 2,500,000. Prepare the journal entry to record the impairment loss (If any) on December 31, 2020. For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). An appraisal indicated that the fair value of the inventory was $467,000 and the fair value of the plant assets was $1,450,000. The agreed purchase price was $2,700,000, and this amount was paid in cash to the previous owners of Brighton Company. Required: a. Prepare the entry to record the purchase of Brighton Company. b. Assume that the carrying amount of Brighton Company division's net assets, including goodwill is $2,900,000. The recoverable amount of the division is estimated to be $ 2,500,000. Prepare the journal entry to record the impairment loss (If any) on December 31, 2020. For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac)