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 Rover Company are as follows:
| Reporting Unit | ||
| A | B | C |
Cash and Receivables | $ 30,000 | $ 80,000 | $ 20,000 |
Inventory | 60,000 | 100,000 | 40,000 |
Land | 20,000 | 30,000 | 10,000 |
Buildings | 100,000 | 150,000 | 80,000 |
Equipment | 140,000 | 90,000 | 50,000 |
Accounts Payable | 40,000 | 60,000 | 10,000 |
Fair Value of Reporting Unit | 400,000 | 440,000 | 265,000 |
Carrying Value of Investment | 420,000 | 500,000 | 290,000 |
Goodwill Included in Carrying Value | 70,000 | 80,000 | 40,000 |
Required
a. Determine the amount of goodwill that Rover should report in its current financial statements.
b. Determine the amount, if any, that Rover should report as impairment of goodwill for the current period.
We need at least 10 more requests to produce the solution.
0 / 10 have requested this problem solution
The more requests, the faster the answer.