Compute the amount of goodwill impairment

Assignment Help Accounting Basics
Reference no: EM132642096

Question - Pet Company recently acquired two businesses, Boat and Tree, recognizing goodwill in each acquisition. Pet has allocated the acquired goodwill to both of its reporting units. Pet provides the following information for performing its 2020 annual review for Goodwill impairment:

Subsidiary

Total Fair Value of the Subsidiary

boat - $285,000

tree - $225,000

Fair Value of the Subsidiary's Identifiable Net Assets

boat - 390,000

tree - 215,000

Carrying Value of the Subsidiary's Total Net Assets (Including Goodwill)

boat - 370,000

tree - 230,000

Carrying Value of the Allocated Goodwill

boat - 50,000

tree - 75,000

Pet has decided to forgo the qualitative test for goodwill impairment and instead to go directly to the quantitative test.

Required - Compute the amount of goodwill impairment (if any) that Pet must include in the Consolidated Income Statement for 2020.

Reference no: EM132642096

Questions Cloud

Prepare the balance sheet for drammel design studio : Prepare the balance sheet for Drammel Design Studio as of December 31?, 2018. ?(If a box is not used in the table leave the box? empty)
What is the overall tax rate on SHO income : Andrea would like to organize SHO as either an LLC (taxed as a sole proprietorship) or a C corporation. What is the overall tax rate on SHO income
Discuss the recent public policy decisions : Discuss the recent public policy decisions made in Texas with respect to abortion. Find at least one Op-Ed on the issue and explain
Showing the movement on the consolidated retained earnings : Showing the movement on the consolidated retained earnings attributable to Company X for the year to 30th September 2016.
Compute the amount of goodwill impairment : Compute the amount of goodwill impairment (if any) that Pet must include in the Consolidated Income Statement for 2020
What the differences and similarities between ROE and ROA : Question - What are the differences and similarities between ROE and ROA? Give a numerical example to illustrate your points
Perennial statement in public sector budgeting : "On what basis shall we allocate resources to Program A instead of Program B," is the perennial statement in public sector budgeting.
Discuss the core set of doctrines : Discuss the core set of doctrines, concepts, principles, and organizational process that NIMS represents to enable effective, efficient,
Research project on application of predictive analytics : Prepare Research project on Application of predictive analytics for diagnosis of diabetic patients - Studying the existing literature is one of the essential

Reviews

Write a Review

Accounting Basics Questions & Answers

  What was the interest expense related to these bonds

Prepare a bond amortization table for showing the first 4 interest payment periods. What was the interest expense related to these bonds

  What amount of compensation expense should be recorded

When the market price of the share was P42, all 30,000 options were exercised. What amount of compensation expense should be recorded for 2022

  What are the number of shares of common stock

What are the number of shares of common stock that Terry should use in calculating basic earnings per share for 2016

  What was net income for the year

At the beginning of the year, Company ABC reported total liabilities of 356,30. What was net income for the year

  Which of the following explains the behavior of the fixed

which of the following describes the behavior of the fixed cost per unit?a. decreases with increasing productionb.

  Prepare aamodt entries to record estimated returns

Past experience indicates that the normal return rate is 15%. Prepare Aamodt's entries to record Estimated returns at December 31, 2010

  Break-even point for the given sales mix

Prepare contribution margins as in part (1) with all revisions - Break-even point for the given sales mix and Margin of safety for the estimated sales volum

  What is the taxable equivalent yield on a municipal bond

What's the taxable equivalent yield on a municipal bond with a yield to maturity of 4.2 percent for an investor in the 25 percent marginal tax bracket

  Investment transactions and events

An NFPO had the following transactions and events. Prepare journal entries to record these transactions and events, based on the assumption that the NFPO.

  Prepare journal entries to record the transactions

Handel Company uses the allowance method for estimating uncollectible accounts. Prepare journal entries to record the following transactions

  Prepare a budget for carmen cookies for june

Management expects the number of cookies sold to be 15 percent greater in June than in April, Prepare a budget for Carmen's Cookies for June

  Is the related lease finance or operating lease

If he sells the pubs abd then leases them back would you expect Lion Nathan to change how it accounts for the depreciation of he building?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd