Compute the amount of goodwill recognized, if any, on July 31, 2020.
Determine the impairment loss, if any, to be recorded on December 31, 2020
Assume that fair value of the Conchita Division is $1,736,000 instead of $1,850,000. Determine the impairment loss, if any, to be recorded on December 31, 2020.
Prepare the journal entry to record the impairment loss, if any, and indicate where the loss would be reported in the income statement.
| This loss will be reported in income as a separate line item before the subtotal : |
Homework Answers
Add Answer to:
Compute the amount of goodwill recognized, if any, on July 31,
2020.
Determine the impairment loss,...
Compute the amount of goodwill recognized, if any, on July 31, 2020. (If answer is zero,...
Compute the amount of goodwill recognized, if any, on July 31,
2020. (If answer is zero, do not leave answer field
blank. Enter 0 for the amount.)
Find:
Goodwill recognized on july 31, 2020 =
Imparement loss to be recorded december 31, 2020 =
Assuming fair value of conchita division is 1,460,000 instead of
1,850,000, the new impairment loss is =
Question 4 On July 31, 2020, Blossom Company paid $2,900,000 to acquire all of the common stock of Conchita...
On July 31, 2019, Mexico Company paid to acquire all of the common stock of Conchita Incorporated...
On July 31, 2019, Mexico Company paid to acquire all of the common stock of Conchita Incorporated, which became a division of Mexico Conchita reported the following balance sheet at the time of the acquisition Current assets Noncurrent assets $3,500,000 $800,000 Current liabilities $2,700,000 Long-term liabilities $3,500,000 |Stockholders' equity $600,000 $500,000 $2,400,000 Total liabilities and stockholders' equity$3,500,000 Total assets It was determined at the date of the purchase that the fair value of the identifiable net assets of Conchit $2,850,000...
On July 31, 2020, Carla Vista Company paid $3,000,000 to acquire all of the common stock of Conchita Incorporated, which...
On July 31, 2020, Carla Vista Company paid $3,000,000 to acquire all of the common stock of Conchita Incorporated, which became a division (a reporting unit) of Carla Vista. Conchita reported the following balance sheet at the time of the acquisition. Current assets $710,000 Current liabilities $600,000 Noncurrent assets 2,700,000 Long-term liabilities 500,000 Total assets $3,410,000 Stockholders’ equity 2,310,000 Total liabilities and stockholders’ equity $3,410,000 It was determined at the date of the purchase that the fair value of the...
On July 31, 2020, Wildhorse Company paid $2,850,000 to acquire all of the common stock of...
On July 31, 2020, Wildhorse Company paid $2,850,000 to acquire all of the common stock of Conchita Incorporated, which became a division (a reporting unit) of Wildhorse. Conchita reported the following balance sheet at the time of the acquisition. Current assets $750,000 Current liabilities $600,000 Noncurrent assets 2,550,000 Long-term liabilities 500,000 Total assets $3,300,000 Stockholders’ equity 2,200,000 Total liabilities and stockholders’ equity $3,300,000 It was determined at the date of the purchase that the fair value of the identifiable net...
On July 31, 2017, Sunland Company paid $2,850,000 to acquire all of the common stock of...
On July 31, 2017, Sunland Company paid $2,850,000 to acquire all of the common stock of Conchita Incorporated, which became a division of Sunland. Conchita reported the following balance sheet at the time of the acquisition. Current assets $750,000 Current liabilities $560,000 Noncurrent assets 2,550,000 Long-term liabilities 460,000 Total assets $3,300,000 Stockholders’ equity 2,280,000 Total liabilities and stockholders’ equity $3,300,000 It was determined at the date of the purchase that the fair value of the identifiable net assets of Conchita...
Problem 12-4 On July 31, 2017, Crane Company paid $2,750,000 to acquire all of the common...
Problem 12-4
On July 31, 2017, Crane Company paid $2,750,000 to acquire all of
the common stock of Conchita Incorporated, which became a division
of Crane. Conchita reported the following balance sheet at the time
of the acquisition.
Current assets
$830,000
Current liabilities
$530,000
Noncurrent assets
2,450,000
Long-term liabilities
430,000
Total assets
$3,280,000
Stockholders’ equity
2,320,000
Total liabilities and stockholders’
equity
$3,280,000
It was determined at the date of the purchase that the fair value
of the identifiable net assets...
(b) The company's statement of financial position as of December 31, 2015 Be sure to give...
(b) The company's statement of financial position as of December 31, 2015 Be sure to give account titles and amounts, and briefly justify your presentation. 56 P12-5 (Goodwill, Impairment) On July 31, 2015, Mexico Company paid $3,000,000 to acquire all of the common stock of Conchita Incorporated, which became a division (cash-generating unit) of Mexico. Conchita reported the following statement of financial position at the time of the acquisition. Non-current assets Current assets $2,700,000 800,000 $3,500,000 Equity Non-current liabilities Current...
35. Goodwill, impairment. On May 3, 2018, Armstrong Company paid $3,500,000 to acquire all of the...
35. Goodwill, impairment. On May 3, 2018, Armstrong Company paid $3,500,000 to acquire all of the common stock of Hall Corporation, which became a division of Armstrong. Hall reported the following balance sheet at the time of the acquisition: $ 900,000 2,700,000 Current liabilities Long-term liabilities Stockholders' equity Total liabilities and S 600,000 500,000 2,500,000 Current assets Noncurrent assets Total assets stockholders' equity $3,600,000 It was determined at the date of the purchase that the fair value of the identifiable...
Part 2 please, show work. View Policies Current Attempt in Progress On May 31, 2018, Armstrong...
Part 2 please, show work.
View Policies Current Attempt in Progress On May 31, 2018, Armstrong company paid $3,500,000 to acquire all of the common stock of Hall Corporation, which became a division of Armstrong Hall reported the following balance sheet at the time of the acquisition Current assets Noncurrent assets $ 900,000 Current liabilities 2,700.000 Long-term liabilities Stockholder's equity Total liabilities and $3,600.000 stockholder's equity $ 600,000 500.000 2,500,000 $3,600,000 Total assets It was determined at the date of...
On May 31, 2016, Columbanus Company paid $2,000,000 to acquire all of the common stock of...
On May 31, 2016, Columbanus Company paid $2,000,000 to acquire all of the common stock of Mistor Corporation, which became a division of Columbanus. Mistor reported the following balance sheet at the time of the acquisition: It was determined at the date of the purchase that the fair value of the identifiable net assets of Mistor was $1,875,000. At December 31, 2016, Mistor reports the following balance sheet information: The recorded amount for Mistor's net assets (excluding goodwill) is the...
Compute the amount of goodwill recognized, if any, on July 31,
2020. (If answer is zero, do not leave answer field
blank. Enter 0 for the amount.)
Find:
Goodwill recognized on july 31, 2020 =
Imparement loss to be recorded december 31, 2020 =
Assuming fair value of conchita division is 1,460,000 instead of
1,850,000, the new impairment loss is =
Question 4 On July 31, 2020, Blossom Company paid $2,900,000 to acquire all of the common stock of Conchita...
On July 31, 2019, Mexico Company paid to acquire all of the common stock of Conchita Incorporated, which became a division of Mexico Conchita reported the following balance sheet at the time of the acquisition Current assets Noncurrent assets $3,500,000 $800,000 Current liabilities $2,700,000 Long-term liabilities $3,500,000 |Stockholders' equity $600,000 $500,000 $2,400,000 Total liabilities and stockholders' equity$3,500,000 Total assets It was determined at the date of the purchase that the fair value of the identifiable net assets of Conchit $2,850,000...
Problem 12-4
On July 31, 2017, Crane Company paid $2,750,000 to acquire all of
the common stock of Conchita Incorporated, which became a division
of Crane. Conchita reported the following balance sheet at the time
of the acquisition.
Current assets
$830,000
Current liabilities
$530,000
Noncurrent assets
2,450,000
Long-term liabilities
430,000
Total assets
$3,280,000
Stockholders’ equity
2,320,000
Total liabilities and stockholders’
equity
$3,280,000
It was determined at the date of the purchase that the fair value
of the identifiable net assets...
(b) The company's statement of financial position as of December 31, 2015 Be sure to give account titles and amounts, and briefly justify your presentation. 56 P12-5 (Goodwill, Impairment) On July 31, 2015, Mexico Company paid $3,000,000 to acquire all of the common stock of Conchita Incorporated, which became a division (cash-generating unit) of Mexico. Conchita reported the following statement of financial position at the time of the acquisition. Non-current assets Current assets $2,700,000 800,000 $3,500,000 Equity Non-current liabilities Current...
35. Goodwill, impairment. On May 3, 2018, Armstrong Company paid $3,500,000 to acquire all of the common stock of Hall Corporation, which became a division of Armstrong. Hall reported the following balance sheet at the time of the acquisition: $ 900,000 2,700,000 Current liabilities Long-term liabilities Stockholders' equity Total liabilities and S 600,000 500,000 2,500,000 Current assets Noncurrent assets Total assets stockholders' equity $3,600,000 It was determined at the date of the purchase that the fair value of the identifiable...
Part 2 please, show work.
View Policies Current Attempt in Progress On May 31, 2018, Armstrong company paid $3,500,000 to acquire all of the common stock of Hall Corporation, which became a division of Armstrong Hall reported the following balance sheet at the time of the acquisition Current assets Noncurrent assets $ 900,000 Current liabilities 2,700.000 Long-term liabilities Stockholder's equity Total liabilities and $3,600.000 stockholder's equity $ 600,000 500.000 2,500,000 $3,600,000 Total assets It was determined at the date of...
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