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Exercise 2-10
On January 1, 2013, Porsche Company acquired the net assets of Saab
Company for $449,660 cash. The fair value of Saab’s identifiable
net assets was $375,570 on this date. Porsche Company decided to
measure goodwill impairment using the present value of future cash
flows to estimate the fair value of the reporting unit (Saab). The
information for these subsequent years is as follows:
Year
Present Value
of Future Cash Flows
Carrying Value of
Saab’s Identifiable
Net Assets*
Fair...
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On January 1, 2013, Porsche Company acquired the net assets of
Saab Company for $450,080 cash. The fair value of Saab’s
identifiable net assets was $374,890 on this date. Porsche Company
decided to measure goodwill impairment using the present value of
future cash flows to estimate the fair value of the reporting unit
(Saab). The information for these subsequent years is as
follows:
For each year determine the amount of goodwill impairment, if
any.
Exercise 2-10 On January 1, 2013,...
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Exercise 2-10
On January 1, 2013, Porsche Company acquired the net assets of Saab
Company for $450,800 cash. The fair value of Saab’s identifiable
net assets was $375,520 on this date. Porsche Company decided to
measure goodwill impairment using the present value of future cash
flows to estimate the fair value of the reporting unit (Saab). The
information for these subsequent years is as follows:
Year
Present Value
of Future Cash Flows
Carrying Value of
Saab’s Identifiable
Net Assets*
Fair...
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On January 1, 2013, Porsche Company
acquired the net assets of Saab Company for $450,080 cash. The fair
value of Saab’s identifiable net assets was $374,890 on this date.
Porsche Company decided to measure goodwill impairment using the
present value of future cash flows to estimate the fair value of
the reporting unit (Saab). The information for these subsequent
years is as follows: For each year determine the amount of goodwill
impairment, if any. Please show work
Exercise 2-10 On...
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On January 1, 2013, Porsche Company acquired the net assets of Saab Company for $450,420 cash. The fair value of Saab's Identifiable net assets was $374,640 on this date. Porsche Company decided to measure goodwill Impairment using the present value of future cash flows to estimate the fair value of the reporting unit (Saab). The information for these subsequent years is as follows: Year 2014 2015 2016 Present Value of Future Cash Flows $400,600 $400,450 $350,410 Carrying Value of Saab's...
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For each year determine the
amount of goodwill impairment, if any.
On January 1, 2013, Porsche Company acquired 100% of Saab Company's stock for $451,730 cash. The fair value of Saab's identifiable net assets was $376,340 on this date. Porsche Company decided to measure goodwill ble prices of similar businesses to estimate the fair value of the reporting unit (Saab). The information for these subsequent years is as follows: Year 2014 2015 2016 Present Value of Future Cash Flows $400,630...
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1) After doing goodwill impairment test in year 2019,
the carrying value including goodwill of S Co. was: *
a) $1,401,000
b) $1,403,000
c) $1,400,000
d) $1,402,000
2) After doing goodwill impairment test in year 2018, the result
was: *
a) Impairment loss of $13,000
b) No Impariment loss
c) Impairment loss of $12,000
d) Impairment loss of $10,000
On January 1, 2018, P Company acquired the net assets of S Company for $1,600,000 cash. The fair value of S...
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Kingbird Division Net Assets As of December 31, 2020 (in millions) Cash Accounts receivable Property, plant, and equipment (net) Goodwill Less: Notes payable Net assets $62 211 2,606 212 (2,601) $490 The purpose of the Kingbird Division is to develop a nuclear-powered aircraft. If successful, traveling delays associated with refueling could be substantially reduced. Many other benefits would also occur. To date, management has not had much success and is deciding whether a write-down at this time is appropriate. Management...
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Exercise 2-5
Pritano Company acquired all the net assets of Succo Company on
December 31, 2013, for $2,362,200 cash. The balance sheet of Succo
Company immediately prior to the acquisition showed:
Book value
Fair value
Current assets
$ 891,390
$891,390
Plant and equipment
1,075,210
1,477,700
Total
$1,966,600
$2,369,090
Liabilities
$178,520
$232,990
Common stock
483,630
Other contributed capital
544,200
Retained earnings
760,250
Total
$1,966,600
As part of the negotiations, Pritano agreed to pay the stockholders
of Succo $379,850 cash if the...
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Identifiable Intangibles and Goodwill, U.S.
GAAP
International Foods, a U.S. company, acquired two companies in
2013. As a result, its consolidated financial statements include
the following acquired intangibles:
Intangible Asset
Date of Acquisition
Fair Value at Date of Acquisition
Useful Life
Customer relationships
January 1, 2013
$3,200,000
10 years
Favorable leaseholds
June 30, 2013
4,800,000
12 years
Brand names
June 30, 2013
14,400,000
Indefinite
Goodwill
January 1, 2013
400,000,000
Indefinite
Goodwill was assigned to the following reporting units:
Asia
$80,000,000...
Exercise 2-10
On January 1, 2013, Porsche Company acquired the net assets of Saab
Company for $449,660 cash. The fair value of Saab’s identifiable
net assets was $375,570 on this date. Porsche Company decided to
measure goodwill impairment using the present value of future cash
flows to estimate the fair value of the reporting unit (Saab). The
information for these subsequent years is as follows:
Year
Present Value
of Future Cash Flows
Carrying Value of
Saab’s Identifiable
Net Assets*
Fair...
On January 1, 2013, Porsche Company acquired the net assets of
Saab Company for $450,080 cash. The fair value of Saab’s
identifiable net assets was $374,890 on this date. Porsche Company
decided to measure goodwill impairment using the present value of
future cash flows to estimate the fair value of the reporting unit
(Saab). The information for these subsequent years is as
follows:
For each year determine the amount of goodwill impairment, if
any.
Exercise 2-10 On January 1, 2013,...
On January 1, 2013, Porsche Company
acquired the net assets of Saab Company for $450,080 cash. The fair
value of Saab’s identifiable net assets was $374,890 on this date.
Porsche Company decided to measure goodwill impairment using the
present value of future cash flows to estimate the fair value of
the reporting unit (Saab). The information for these subsequent
years is as follows: For each year determine the amount of goodwill
impairment, if any. Please show work
Exercise 2-10 On...
On January 1, 2013, Porsche Company acquired the net assets of Saab Company for $450,420 cash. The fair value of Saab's Identifiable net assets was $374,640 on this date. Porsche Company decided to measure goodwill Impairment using the present value of future cash flows to estimate the fair value of the reporting unit (Saab). The information for these subsequent years is as follows: Year 2014 2015 2016 Present Value of Future Cash Flows $400,600 $400,450 $350,410 Carrying Value of Saab's...
For each year determine the
amount of goodwill impairment, if any.
On January 1, 2013, Porsche Company acquired 100% of Saab Company's stock for $451,730 cash. The fair value of Saab's identifiable net assets was $376,340 on this date. Porsche Company decided to measure goodwill ble prices of similar businesses to estimate the fair value of the reporting unit (Saab). The information for these subsequent years is as follows: Year 2014 2015 2016 Present Value of Future Cash Flows $400,630...
1) After doing goodwill impairment test in year 2019,
the carrying value including goodwill of S Co. was: *
a) $1,401,000
b) $1,403,000
c) $1,400,000
d) $1,402,000
2) After doing goodwill impairment test in year 2018, the result
was: *
a) Impairment loss of $13,000
b) No Impariment loss
c) Impairment loss of $12,000
d) Impairment loss of $10,000
On January 1, 2018, P Company acquired the net assets of S Company for $1,600,000 cash. The fair value of S...
Kingbird Division Net Assets As of December 31, 2020 (in millions) Cash Accounts receivable Property, plant, and equipment (net) Goodwill Less: Notes payable Net assets $62 211 2,606 212 (2,601) $490 The purpose of the Kingbird Division is to develop a nuclear-powered aircraft. If successful, traveling delays associated with refueling could be substantially reduced. Many other benefits would also occur. To date, management has not had much success and is deciding whether a write-down at this time is appropriate. Management...