Homework Answers
For test 1, net book value of the reporting unit has to be more than the fair value of the reporting unit.
30) The answer is True.
31) The answer is False.
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In 20x1, Company A has two reporting units and having concluded it is unable to use...
Company B has a reporting unit that failed step one. For step 2, it has calculated...
Company B has a reporting unit that failed step one. For step 2, it has calculated the following amounts (in Millions) for this reporting unit: $800 Goodwill on the books at time step 2 is performed Book value of the reporting unit (including goodwill) 2200 1800 Fair value of reporting unit Fair value of net assets of the reporting unit, excluding goodwill, assuming a hypothetical purchase of the reporting unit 1300 32. The implied fair value of goodwill is 400...
Alomar Co., a consolidated enterprise, conducted an impairment review for each of its reporting units. In...
Alomar Co., a consolidated enterprise, conducted an impairment review for each of its reporting units. In its qualitative assessment, one particular reporting unit, Sellers, emerged as a candidate for possible goodwill impairment. Sellers has recognized net assets of $1,366, including goodwill of $915. Seller’s fair value is assessed at $1,181 and includes two internally developed unrecognized intangible assets (a patent and a customer list with fair values of $222 and $115, respectively). The following table summarizes current financial information for...
In 20X1, Cordova Inc. acquired Cordant Corporation and $140 million in goodwill was recorded. At the...
In 20X1, Cordova Inc. acquired Cordant Corporation and $140 million in goodwill was recorded. At the end of its 20X3 fiscal year, management has provided the following information for a required goodwill impairment test ($ in millions): Fair value of Cordant (approximates fair value less costs to sell) $ 980 Fair value of Cordant’s net assets (excluding goodwill) 900 Book value of Cordant’s net assets (including goodwill) 1,050 Present value of estimated future cash flows 1,000 Assuming that Cordant is...
Alomar Co., a consolidated enterprise, conducted an impairment review for each of its reporting units. In...
Alomar Co., a consolidated enterprise, conducted an impairment
review for each of its reporting units. In its qualitative
assessment, one particular reporting unit, Sellers, emerged as a
candidate for possible goodwill impairment. Sellers had recognized
net assets with carrying amounts totaling $1,192, including
goodwill of $705. Seller’s reporting unit fair value is assessed at
$1,184 and includes two internally developed unrecognized
intangible assets (a patent and a customer list with fair values of
$272 and $112, respectively). The following table...
Alomar Co., a consolidated enterprise, conducted an impairment review for each of its reporting units. In...
Alomar Co., a consolidated enterprise, conducted an impairment review for each of its reporting units. In its qualitative assessment, one particular reporting unit, Sellers, emerged as a candidate for possible goodwill impairment. Sellers had recognized net assets with carrying amounts totaling $1,008, including goodwill of $600. Seller’s reporting unit fair value is assessed at $978 and includes two internally developed unrecognized intangible assets (a patent and a customer list with fair values of $132 and $142, respectively). The following table...
Alomar Co., a consolidated enterprise, conducted an impairment review for each of its reporting units. In...
Alomar Co., a consolidated enterprise, conducted an impairment review for each of its reporting units. In its qualitative assessment, one particular reporting unit, Sellers, emerged as a candidate for possible goodwill impairment. Sellers has recognized net assets of $1,087, including goodwill of $580. Seller’s fair value is assessed at $1,036 and includes two internally developed unrecognized intangible assets (a patent and a customer list with fair values of $242 and $108, respectively). The following table summarizes current financial information for...
Alomar Co., a consolidated enterprise, conducted an impairment review for each of its reporting units. In...
Alomar Co., a consolidated enterprise, conducted an impairment review for each of its reporting units. In its qualitative assessment, one particular reporting unit, Sellers, emerged as a candidate for possible goodwill impairment. Sellers has recognized net assets of $1,542, including goodwill of $935. Seller’s fair value is assessed at $1,392 and includes two internally developed unrecognized intangible assets (a patent and a customer list with fair values of $309 and $143, respectively). The following table summarizes current financial information for...
Alomar Co., a consolidated enterprise, conducted an impairment review for each of its reporting units. In its qualitative assessment, one particular reporting unit, Sellers, emerged as a candidate for...
Alomar Co., a consolidated enterprise, conducted an impairment review for each of its reporting units. In its qualitative assessment, one particular reporting unit, Sellers, emerged as a candidate for possible goodwill impairment. Sellers has recognized net assets of $1,132, including goodwill of $685. Seller’s fair value is assessed at $1,095 and includes two internally developed unrecognized intangible assets (a patent and a customer list with fair values of $183 and $147, respectively). The following table summarizes current financial information for...
Parent Company recently acquired a business appropriately recognizing goodwill in the acquisition at the reporting unit...
Parent Company recently acquired a business appropriately recognizing goodwill in the acquisition at the reporting unit level. The goodwill was allocated to the reporting units: Rexy Inc. Parent provides the following information in performing the 2019 annual review for impairment: Rexy Reporting Unit: Carrying value of net assets including $130,000 of Goodwill equals $540,000; Fair Value of net assets excluding Goodwill equals $400,000; Valuation of Reporting Unit (including Goodwill $525,000). Using the two-step Goodwill Impairment test, compute the amount of...
Need help for parts a & b for the problems Goodwill Allocation and Impairment Testing Porter...
Need help for parts a & b for the problems
Goodwill Allocation and Impairment Testing Porter Corporation acquired Stewart CEDERE vices, and Mobile Broadband. In addition, one of Porter's reporting units, U.S. Cellular, benefit on January 1, 2020, at a cost of $180 million. Stewart has three reporting units, Networks, Globe the acquisition. Relevant data are as follows, at the date of acquisition (in millions): 176 Chapter 4 Consolidated Financial Statements Subsequent to Acquisite LO 3 P4.6 Global Services Mobile...
Company B has a reporting unit that failed step one. For step 2, it has calculated the following amounts (in Millions) for this reporting unit: $800 Goodwill on the books at time step 2 is performed Book value of the reporting unit (including goodwill) 2200 1800 Fair value of reporting unit Fair value of net assets of the reporting unit, excluding goodwill, assuming a hypothetical purchase of the reporting unit 1300 32. The implied fair value of goodwill is 400...
Alomar Co., a consolidated enterprise, conducted an impairment
review for each of its reporting units. In its qualitative
assessment, one particular reporting unit, Sellers, emerged as a
candidate for possible goodwill impairment. Sellers had recognized
net assets with carrying amounts totaling $1,192, including
goodwill of $705. Seller’s reporting unit fair value is assessed at
$1,184 and includes two internally developed unrecognized
intangible assets (a patent and a customer list with fair values of
$272 and $112, respectively). The following table...
Need help for parts a & b for the problems
Goodwill Allocation and Impairment Testing Porter Corporation acquired Stewart CEDERE vices, and Mobile Broadband. In addition, one of Porter's reporting units, U.S. Cellular, benefit on January 1, 2020, at a cost of $180 million. Stewart has three reporting units, Networks, Globe the acquisition. Relevant data are as follows, at the date of acquisition (in millions): 176 Chapter 4 Consolidated Financial Statements Subsequent to Acquisite LO 3 P4.6 Global Services Mobile...
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