On January 1, 2014, Innovus, Inc., acquired 100 percent of the common stock of ChipTech...

On January 1, 2014, Innovus, Inc., acquired 100 percent of the common stock of ChipTech Company for $670,000 in cash and other fair-value consideration. ChipTech’s fair value was allocated among its net assets as follows:

Required

a. Using Excel, compute consolidated balances for Innovus and ChipTech. Either use a worksheet approach or compute the balances directly.

b. Prepare a second spreadsheet that shows a 2015 impairment loss for the entire amount of goodwill from the ChipTech acquisition.