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The fair values of assets and liabilities held by three reporting units and other information related to the reporting units owned by Prover Company are
The fair values of assets and liabilities held by three reporting units and other information related to the reporting units owned by Prover Company are as follows:
Required: a. Determine the amount, if any, that Prover should report as a goodwill impairment for the current period.
b. Determine the amount of goodwill that Prover should report in its current financial statements.
Cash & Receivables Inventory Land Buildings Equipment Accounts Payable Fair Value of Reporting Unit Carrying Value of Investment Goodwill Included in Carrying Value Reporting Unit A B $ 33,000 $ 88,100 $ 22,100 66,300 110,500 44,200 22,100 33,300 11,200 112,000 168,000 89,600 156, 800 100,800 56,000 44,800 67,200 11,200 448,000 492,800 296,800 470, 400 560,000 324,800 78,400 59,300 44,800Step by Step Solution
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