Req A to E a. Goodwill is inspired if the .....b. Impairment loss.....c. Consolidated net d. Consolidated goodwill e. Consolidated broadcast licenses Req F ??

On January 1, Prine, Inc., acquired 100 percent of Lydia Company's common stock for a fair value of $119.226,000 in cash and stock. Lydia's assets and liabilities equaled their fair values except for its eq remaining life. dervalued by $680,000 and had a 10-year Prine specializes in media distribution and viewed its acquisition of Lydia as a strategic move into content ownership and creation. Prine expected both cost and revenue synergies from controlling Lydia's artistic content (a large library of classic movies) and its sports programming specialty video operation. Accordingly. Prine allocated Lydia's assets and liabilities (including $48,662,000 of goodwill) to a newly formed operating segment appropriately designated as a reporting unit. The fair values of the reporting unit's identifiable assets and liabilities through the first year of operations were as follows. Fair Values Account 12/31 Cash 1/1 Receivables ( net ) 261, 000 3 225, 500 Movie library (25-year remaining life) 621, 900 1, 112, 500 40, 450,980 Broadcast licenses (indefinite remaining life) 15, 110,098 21,808,080 60, 120, 900 Equipment (10-year remaining life) Current liabilities 21, 570, 080 19, 890, 808 Long-term debt (558, 900) (890. 080) 6, 890, 980) (6, 690, 908) However, Lydia's assets have taken longer than anticipated to produce the expected synergies with Prine's operations. Accordingly, Prine reviewed events and circumstances and concluded that Lydia's fair value was likely less than its carrying amount. At year-end, Prine reduced its assessment of the Lydia reporting unit's fair value to $111,798,000. At December 31, Prine and Lydia submitted the following balances for consolidation. There were no intra-entity payables on that date. Prine, Inc. Lydia Co. Revenues (18, 700, 600) 5/ 18, 108,600 Operating expenses 16, 200, 900 15, 800, 080 Equity in Lydia earnings (3, 032, 000) Dividends declared 500, 900 150,000 Retained earnings, 1/1 55, 500, 900) (2, 384, 900) Cash 231, 500 225, 508 Receivables (net) 365, 900 1. 112. 500 Investment in Lydia 122, 108, 900 Broadcast licenses 385, 900 14, 940, 200 Movie library 527, 500 45, 700, 500 Equipment (net ) 139, 300, 900 19. 500, 900 Current liabilities ( 785, 900) (424,600 Long-term debt ( 26, 600, 600) (8, 220,800 Common stock (175, 000, 900) (67, 500, 080) a. What is the relevant initial test to determine whether goodwill could be b. At what amount should Prine record an impairment loss for its Lydia rep c. What is consolidated net income for the year? d. What is the December 31 consolidated balance for goodwill? e. What is the December 31 consolidated balance for broadcast licenses? f. Prepare a consolidated worksheet for Prine and Lydia (Prine's trial bal loss). Complete this question by entering your answers in the tabs below