Question
Yoda Corp. bought Hufflepuff Co. in 2019 and appropriately recorded $139,000 of goodwill related to the purchase. On December 31, 2020, the fair value of
Yoda Corp. bought Hufflepuff Co. in 2019 and appropriately recorded $139,000 of goodwill related to the purchase. On December 31, 2020, the fair value of Hufflepuff Division is $427,000 and it is carried on Yoda Corp.s books for a total of $531,000, including the goodwill.
What goodwill impairment should be recognized by Yoda Corp. in 2020?
$104,000
$392,000
$139,000
$0
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Financial and Managerial Accounting
Authors: Horngren, Harrison, Oliver
3rd Edition
978-0132497992, 132913771, 132497972, 132497999, 9780132913775, 978-0132497978
