Please describe how you can solve this: Pout Company reports assets with a carrying value of...
Please describe how you can solve this:
Pout Company reports assets with a carrying value of $420,000 (including goodwill with a carrying value of $35,000) assigned to an identifiable reporting unit purchased at the end of the prior year. The fair value of the reporting unit is currently $350,000, and the carrying value of the net assets held by the reporting unit is $330,000. At the end of the current period, Pout should report goodwill of
a. $45,000. b. $35,000. c. $25,000. d. $10,000.
5. Pill Company has a reporting unit and the fair value of its net identifiable assets of $500,000. The carrying value of the reporting unit’s net assets on Pill’s books is $575,000, which includes $90,000 of goodwill. The estimated fair value of the reporting unit is $560,000. Pill should report impairment of goodwill of
a. $60,000. b. $30,000. c. $15,000. d. $0.
Homework Answers
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Please describe how you can solve this: Pout Company reports assets with a carrying value of...
29) The fair value of net identifiable assets of a reporting unit of X Company is...
29) The fair value of net identifiable assets of a reporting unit of X Company is $300,000. On X Company's books, the carrying value of this reporting unit's net assets is $350,000, which includes $60,000 of goodwill. If the fair value of the reporting unit as a whole is $335,000, what amount of goodwill impairment will be recognized for this unit? A) $0 B) $15,000 C) $25,000 D) $35,000 Answer: B Difficulty: 3 Hard Topic: Goodwill Impairment Learning Objective: 01-05...
objective question On December 31, 20X3, Saxe Corporation was merged into Poe Corporation. In the business...
objective question
On December 31, 20X3, Saxe Corporation was merged into Poe Corporation. In the business combination, Poe issued 200,000 shares of its $10 par common stock, with a market price of $18 a share, for all of Saxe's common stock. The stockholders' equity section of each company's balance sheet immediately before the combination was: Poe Saxe Common Stock Additional Paid-In Capital Retained Earnings $3,000,000 1,300,000 2,500,000 $6,800,000 $1,500,000 150,000 850,000 $2,500,000 In the December 31, 20X3, combined balance sheet,...
Exercise 2-10 On January 1, 2013, Porsche Company acquired the net assets of Saab Company for...
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...
On January 1, 20X7, Proft Company purchased Strobe Company’s net assets and assigned them to four...
On January 1, 20X7, Proft Company purchased Strobe Company’s net assets and assigned them to four separate reporting units. Total goodwill of $176,000 is assigned to the reporting units as indicated: Reporting Unit A B C D Carrying value of reporting unit at 12/31/20X7 $ 700,000 $ 330,000 $ 380,000 $ 520,000 Goodwill included in carrying value 60,000 48,000 28,000 40,000 Fair value of net identifiable assets at 12/31/20X7 600,000 300,000 400,000 500,000 Fair value of reporting unit at 12/31/20X7...
1) After doing goodwill impairment test in year 2019, the carrying value including goodwill of S...
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...
On January 1, 2013, Porsche Company acquired the net assets of Saab Company for $450,080 cash....
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,...
Exercise 2-10 On January 1, 2013, Porsche Company acquired the net assets of Saab Company for...
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 $450,420 cash....
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...
Lowell Company recently acquired 100% of Boston, which has three businesses units, recognizing goodwill in each...
Lowell Company recently acquired 100% of Boston, which has three businesses units, recognizing goodwill in each acquisition. Boston has allocated its acquired goodwill to its three reporting units: Lexington, Acton, and Chelmsford. Boston provides the following information in performing the 2018 annual review for impairment: Carrying Value Fair Value Fair value of the Unit Lexington Assets other than goodwill 500,000 420,000 525,000 Liabilities (30,000) (20,000) Goodwill 130,000 ? Acton Assets other than goodwill 500,000 560,000 600,000 Liabilities (10,000) (20,000) Goodwill...
On January 1, 2013, Porsche Company acquired the net assets of Saab Company for $450,080 cash....
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...
objective question
On December 31, 20X3, Saxe Corporation was merged into Poe Corporation. In the business combination, Poe issued 200,000 shares of its $10 par common stock, with a market price of $18 a share, for all of Saxe's common stock. The stockholders' equity section of each company's balance sheet immediately before the combination was: Poe Saxe Common Stock Additional Paid-In Capital Retained Earnings $3,000,000 1,300,000 2,500,000 $6,800,000 $1,500,000 150,000 850,000 $2,500,000 In the December 31, 20X3, combined balance sheet,...
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...
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,...
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 $450,420 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...
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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