Question

wouTube Student Portal Login Dashboard Microsoft Office Ho... In Linkedin Handtlake Writing Center NHS der Homework 4 Robinson Company purchased Franklin Company at a price of $3.910.000. The for market value of the net assets purchased equal $2.830.000 1. What is the amount of goodwill that Robinson records at the purchase date? 2. Does Robinson amortize goodwill at year-end? 3. Robinson believes that its employees provide superior customer service, and through their efforts, Robinson believes it has created $1,350,000 of goodwill Should Robinson Company record this goodwill? Complete this question by entering your answers in the tabs below. What is the amount of goodwill that Robinson records at the purchase date? Goodwill Required 2 >

Answer 1

Sowtion Goodwill = 3910000 - 2830000 = 1080000 No Goodwill is not amortized at year end Goodwill decrease loss. is tested for Impairment in value of goodwill is perlodecally and any recorded as Impairment No, Robinson company should not record this goodwill. only purchased goodwill is recorded in books of accounts.