Question
Wildhorses Company bought Special Products Division in 2017 and appropriately recorded $759000 of goodwill related to the purchase. On December 31, 2018, the fair value
Wildhorses Company bought Special Products Division in 2017 and appropriately recorded $759000 of goodwill related to the purchase. On December 31, 2018, the fair value of Special Products Division is $6500000 and it is carried on Wildhorse's books for a total of $5600000, including the goodwill. An analysis of Special Products Division's assets indicates that goodwill of $629000 exists on December 31, 2018. What goodwill impairment should be recognized by Wildhorses in 2018?
$65000.
$499000.
$0.
$271000.
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Accounting Theory Conceptual Issues in a Political and Economic Environment
Authors: Harry I. Wolk, James L. Dodd, John J. Rozycki
9th edition
9781483375014, 1483375013, 9781506300108, 1506300103, 978-1483375021
