In 2009 quasar ltd acquired all of the common stock of

Assignment Help Accounting Basics

Reference no: EM13598134

In 2009, Quasar LTD. acquired all of the common stock of Penlight Laser for $124 million. The fair value of Penlight's identifiable tangible and intangible assets totaled $205 million, and the fair value of liabilities assumed by Quasar was $95 million. Quasar performed the required goodwill impairment test at the end of its fiscal year ended December 31, 2011. Management has provided the following information:

Fair value of Penlight = 115 million
Fair value of Penlight's net assets (excluding goodwill) = 107 million
Book value of Penlight's net assets (including goodwill) = 125 million

Required:
1. Determine the amount of goodwill that resulted from the Penlight acquisition.
2. Determine the amount of goodwill impairment loss that Quasar should recognize at the end of 2011, if any.
3. If an impairment loss is required, prepare the journal entry to record the loss.

Reference no: EM13598134

Questions Cloud

The capital accounts of hope and indiana have balances of : the capital accounts of hope and indiana have balances of 115000 and 95000 respectively. clint and casey are to be

Computation of tax standard deduction and kiddie tax : computation of tax standard deduction and kiddie tax anthony and latrisha are married and have two sons james age 25

Aaron and kim form a partnership by combining the assets of : aaron and kim form a partnership by combining the assets of their separate businesses. aaron contributes accounts

Demand for game day programs priced at 4 is normally : a professional baseball organization chooses to sell game day programs.a. demand for game day programs priced at 4 is

In 2009 quasar ltd acquired all of the common stock of : in 2009 quasar ltd. acquired all of the common stock of penlight laser for 124 million. the fair value of penlights

The heating division of pfc international produces a : the heating division of pfc international produces a heating element that it sells to its customers for 42 per unit.

Lpgtltimg classmceblock : ltpgtltimg classmceblock srchttps3.amazonaws.comanswer-board-image border0 altuploaded image gte12-22 prep academy

Feather friends inc distributes a high-quality wooden : feather friends inc. distributes a high-quality wooden birdhouse that sells for 24 per unit. variable costs are 12.00

Mary also pays 1000 of investment counseling fees and 500 : in the current year mary incurs 3600 of unreimbursed employment-related travel and entertainment expenses. these

User Account

All Pages