User Account

All Pages

Goodwill that resulted from the harman acquisition

Assignment Help Accounting Basics
Reference no: EM13881723

1.On May 28, 2013, Pesky Corporation acquired all of the outstanding common stock of Harman, Inc., for $420 million. The fair value of Harman's identifiable tangible and intangible assets totaled $512 million, and the fair value of liabilities assumed by Pesky was $150 million.
Pesky performed a goodwill impairment test at the end of its fiscal year ended December 31, 2013. Management has provided the following information:

Fair value of Harman, Inc. ............... $400 million
Fair value of Harman's net assets (excluding goodwill) ..... 370 million
Book value of Harman's net assets (including goodwill) ... 410 million

Required:
1. Determine the amount of goodwill that resulted from the Harman acquisition.
2. Determine the amount of goodwill impairment loss that Pesky should recognize at the end of 2013, if any.
3. If an impairment loss is required, prepare the journal entry to record the loss.

Reference no: EM13881723

Questions Cloud

Compute the amount of the unrecovered investment : Compute the amount of the unrecovered investment for each of the 4 years using the rate of return on the unrecovered balance.
Management has provided the following information : management has provided the following information for a required goodwill impairment test:
Describe how lenders might price loans to the borrowers : Suppose that four college students check their FICO scores and discover the information listed below. Describe how lenders might price loans to the borrowers with lower scores versus the borrowers with higher scores in terms of rates and fees charged..
Which proposal accepted on basis of annual life-cycle cost : There will be no salvage value at the end of the 20-year life. Which proposal should be accepted on the basis of an annual life-cycle cost analysis, if the interest rate is 6% per year?
Goodwill that resulted from the harman acquisition : 1.On May 28, 2013, Pesky Corporation acquired all of the outstanding common stock of Harman, Inc., for $420 million.
Describe the hospital organization culture and structure : Assignment - Diagnose an Organizational Structure and relate it to Organizational Environment, Strategy, Staffing Policies, and Technology & Culture. Describe the hospital's organization, culture, and structure
Derive the equation for centripetal acceleration : Derive the equation for centripetal acceleration from the position equations x=Rcostheta and y=Rsin(theta).
How accurately can its position be measured : 1. The energy of a 2.00 keV electron is known to within ±3.00%. How accurately can its position be measured?2. The work function of a material is 3.5 eV. If the material is the illuminated with monochromatic light (l = 300 nm)
Outline the clearing process with a credit card transaction : What different sources of revenue are available from credit card lending? Outline the clearing process with a credit card transaction. What is the biggest risk in credit card loans?

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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