How much expense would a record

Assignment Help Financial Accounting
Reference no: EM132766756

Question - A bought B on 6/31/2012 for $8 million and recorded $4 million in goodwill. While preparing the 2019 consolidated financial statements, A must test that goodwill for impairment and its qualitative assessment has indicated that an impairment is more likely than not. The goodwill has never been impaired previously and is allocated to a single reporting unit. Beta's entire business is considered to be worth $7million at 12/31/2019, with estimated fair values of $16 million for the non-goodwill assets and $8 million for the liabilities. Carrying values are $12 million for the assets (excluding goodwill) and $8 million for the liabilities.

Assume A is a private company and makes the optional election for its goodwill only available to private firms. How much expense would A record in 2019 related to the goodwill (don't include any impairment that might be required)?

Reference no: EM132766756

Questions Cloud

What is a periodic inventory system : What is a periodic inventory system? What kind of businesses use periodic inventory systems
Information management functions : Information Governance (IG) and Records and Information Management Functions.
Explain what the triple bottom philosophy is : The triple-bottom line philosophy is key to the continuing prosperity of a business.
Which related party relationship parent vs subsidary : Which related party relationship between a parent and a subsidary? should be disclosed only if there have been transactions between them during the period
How much expense would a record : Assume A is a private company and makes the optional election for its goodwill only available to private firms. How much expense would A record in 2019
Action the result of which is influence on commerce : Describe an instance where a government has taken some action the result of which is influence on commerce.
Why is working capital management important : Q1. Why is working capital management important? Q2. On what situations is the EOQ model for inventory difficult to apply?
Which any instrument representing ownership shares : An entity shall disclose its key management personnel compensation which includes all of the following except? reimbursable expense
What is the amount of current tax payable by Young Ltd : Plant was acquired by Young Ltd on 1 July 2019 for $350,000. What is the amount of current tax payable by Young Ltd for the year ended 30 June 2020

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

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