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How would you create a journal entry to record impairment

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Reference no: EM132406727

Question

Ayayai Corporation purchased Johnson Company 3 years ago and at that time recorded goodwill of $300,000. The Johnson Division's net assets, including the goodwill, have a carrying amount of $650,000. The fair value of the division is estimated to be $620,000 and the implied goodwill is $270,000.

How would you create a journal entry to record impairment of the goodwill?

Reference no: EM132406727

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