Compute the amount of goodwill acquired by vinson

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Question

On July 1, 2017, Vinson Corporation acquired Carley Company for $900,000 cash. At the time of purchase, Carley's balance sheet showed assets of $775,000 and liabilities of $250,000. The fair value of Carley's assets is estimated to be $950,000.

Compute the amount of goodwill acquired by Vinson.

Amount of goodwill$

On December 31, the fair value of Carley is estimated to be $720,000 and the implied fair value of goodwill is $170,000. The carrying value of Carley's net assets, including the goodwill, at year-end is $750,000. Prepare Vinson's journal entry, if necessary, to record impairment of goodwill.

(Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

Reference no: EM132323091

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