Requirement 1 | |||||
The computation of goodwill recognized on May 31, 2018 | |||||
Purchase price for Hall Corporation | 3500000 | ||||
Less : Fair value of net asset of Hall Corporation | 3100000 | ||||
Goodwill to be recognized | 400000 | ||||
Requirement 2 | |||||
There will not be impairment loss with fair value of Hall division is $2200000, | |||||
as it is above the carrying value of $2000000 as reported in the balance sheet | |||||
of Hall | |||||
Requirment 3 | |||||
There will be impairment loss of $50000 calculated as follows | |||||
Carrying value of Hall's Net asset | 2000000 | ||||
Less : Fair value of Hall's net asset | 1950000 | ||||
Impairment loss to be adjusted against goodwill as priority | 50000 | ||||
The Journal entry is as follows | |||||
Amount in $ | |||||
Date | General Journal | Debit | Credit | ||
December 31, 2018 | Impairment losses | 50000 | |||
Goodwill | 50000 | ||||
To record the impairment loss to goodwill | |||||
35. Goodwill, impairment. On May 3, 2018, Armstrong Company paid $3,500,000 to acquire all of the...
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 follawing balance sheet at the time of the acquisition: $ 900,000 Current liabilities S 600,000 Current assets Noncurrent assets 2.700.000 Long-term liabilities 500,000 Stockholder's equity 2,500.000 Total liabilities and Total assets $3,600.000 $3.600,000 stockholder's equity It was determined at the date of the purchase that the fair...
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 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, 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...
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, 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 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...
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...
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...
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...