Question
The following table summarizes the assets of the Rocker Division (a separate cash-generating unit) at December 31, Year 5, prior to testing goodwill for impairment.
The following table summarizes the assets of the Rocker Division (a separate cash-generating unit) at December 31, Year 5, prior to testing goodwill for impairment. Property, Plant, and Equipment and Other Intangibles are amortized on a straight-line basis over an average useful life of 12 years and 5 years, respectively. Management has estimated the present value of future cash flows from operating the Rocker Division to be $1,560. No fair market value is available.
Carrying amount, 12/31/Y4 | $ 1,000.00 | $ 1,500.00 | $ 500.00 | $ 3,000.00 |
Amortization Expense, Year 5 | $ - | $ (125.00) | $ (100.00) | $ (225.00) |
Subtotal | $ 1,000.00 | $ 1,375.00 | $ 400.00 | $ 2,775.00 |
Impairment loss/recovery | ||||
Carrying amount, 12/31/Y5 |
Required:
Complete the following table to determine the carrying amounts at 12/31/Y'5 for the assets of the Rocker Division.
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