Dow Corporation has assembled the following information for one of its divisions on December 31, 2020....
Dow Corporation has assembled the following information for one of its divisions on December 31, 2020.
| Fair Value | Book Value | |
|---|---|---|
| Total identifiable assets (exclusive of goodwill) | $720,000 | |
| Goodwill | 60,000 | |
| Liabilities | 300,000 | |
| Fair value of the division. | $465,000 |
a. Determine the impairment loss (if any) for the Dow Corporation division.
Note: Do not use a negative sign with your answer.
$Answer
b. How would your answer change if the fair value of total identifiable assets (exclusive of goodwill) were $495,000 instead?
$Answer
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Dow Corporation has assembled the following information for one
of its divisions on December 31, 2020....
Dow Corporation has assembled the following information for one of its divisions on December 31, 2020....
Dow Corporation has assembled the following information for one of its divisions on December 31, 2020. Fair Value Book Value Total identifiable assets (exclusive of goodwill) ....... Goodwill ...... Liabilities. .... Fair value of the division......... $2,400,000 200,000 1,000,000 $1,550,000 Required a. Determine the impairment loss (if any) for the Dow Corporation division. b. How would your answer change if the fair value of total identifiable assets (exclusive of goodwill) were $1,650,000 instead?
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Find:
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Imparement loss to be recorded december 31, 2020 =
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Determine the impairment loss, if any, to be recorded on
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instead of $1,850,000. Determine the impairment loss, if any, to be
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Dow Corporation has assembled the following information for one of its divisions on December 31, 2020. Fair Value Book Value Total identifiable assets (exclusive of goodwill) ....... Goodwill ...... Liabilities. .... Fair value of the division......... $2,400,000 200,000 1,000,000 $1,550,000 Required a. Determine the impairment loss (if any) for the Dow Corporation division. b. How would your answer change if the fair value of total identifiable assets (exclusive of goodwill) were $1,650,000 instead?
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...
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...
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...
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