Question 1 Paper Products, Inc., has $400,000 of goodwill on the balance sheet from The Fork...
Question 1
-
Paper Products, Inc., has $400,000 of goodwill on the balance sheet from The Fork Company which was purchased 5 years ago. The goodwill amortization this year should be
$40,000.
$0.
$20,000.
$10,000.
$80,000.
Homework Answers
| Goodwill is not subject to amortization. Goodwill is tested for impairment periodically and any decline in value of Goodwill is recorded as impairment loss |
| Goodwill amortization this year = $0 |
| Option B $0 is correct |
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Question 1
Paper Products, Inc., has $400,000 of goodwill on the balance
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of goodwill on its balance sheet that resulted from the purchase of
a small business in a prior year. The goodwill had an indefinite
life. During 2017, the company had the following additional
transactions.
Jan.
2
Purchased a patent (7-year life) $313,950.
July
1
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$583,200.
Sept.
1
Research and development costs $176,500.
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Can you help me with this
question?
Goodwill Assigned to Multiple Reporting Units The fair values of assets and liabilities held by three reporting units and other information related to the reporting units owned by Prover Company are as follows: P1-33 Reporting Unit Cash & Receivables Inventory Land Buildings Equipment Accounts Payable Fair Value of Reporting Unit Carrying Value of Investment Goodwill Included in Carrying Value 60,000 20,000 100,000 140,000 40,000 400,000 420,000 70,000 30,000 80,000 100,000 30,000 150,000 90,000...
Answer question (b), do not copy others answer.
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On January 1, 2017, Cullumber Company had a balance of $359,500
of goodwill on its balance sheet that resulted from the purchase of
a small business in a prior year. The goodwill had an indefinite
life. During 2017, the company had the following additional
transactions.
Jan.
2
Purchased a patent (7-year life) $313,950.
July
1
Acquired a 8-year franchise; expiration date July 1, 2,025,
$583,200.
Sept.
1
Research and development costs $176,500.
Make an entry as of December 31, 2017,...
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