Question
Sarasota Corporation purchased Johnson Company 3 years ago and at that time recorded goodwill of $410,000. The Johnson Division's net assets, including the goodwill, have
Sarasota Corporation purchased Johnson Company 3 years ago and at that time recorded goodwill of $410,000. The Johnson Division's net assets, including the goodwill, have a carrying amount of $830,000. The fair value of the division is estimated to be $788,000and the implied goodwill is $368,000.
Prepare Sarasota journal entry to record impairment of the goodwill.
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Management Accounting
Authors: Late RC Sekhar, AV Rajagopalan
1st Edition
195683609, 978-0195683608
