Prepare the impairment test of goodwill

Assignment Help Accounting Basics
Reference no: EM131760818

Question - Wilbur Company acquired Smith Company on January 1, 2011. As part of the acquisition, $1,000,000 in goodwill was recognized and assigned to Wilbur's Transportation reporting unit. For 2011, earnings from the Transportation reporting unit were $450,000. Separately traded companies with operations similar to the Transportation reporting unit had market values approximately equal to five times earnings. As of December 31, 2011, book values and fair values of the Transportation reporting unit were:

 

Book Values

Fair Values

Intangible Assets

$4,000,000

$4,500,000

Goodwill

$1,000,000

-

Liabilities

$2,500,000

$2,500,000

Required - Prepare the impairment test of goodwill as well as any entry needed to record an impairment loss.

Reference no: EM131760818

Questions Cloud

Discuss gaap treatment of reporting additional investments : the GAAP treatment of reporting additional investments in subsidiaries when control has previously been established
How does society generally respond to such images : What are some examples of mass media campaigns that promote or glorify sex and violence.
Discuss balances in selected accounts on december : Devin Wolf Company has the following balances in selected accounts on December
Describe applicable performance measures for monitoring : Provide details about using informatics, technology, and performance data to drive continuous improvement and rapid replication of best practices.
Prepare the impairment test of goodwill : Wilbur Company acquired Smith Company on January 1, 2011. Prepare the impairment test of goodwill as well as any entry needed to record an impairment loss
Discuss have been arguing against free international trade : If that is case why do you think, in recent years, many, including some politicians, have been arguing against free international trade
Evaluate the companys external environment : Determine how to create value and sustain competitive advantage using the environmental scanning strategy.
Confidence interval estimate of the true bmi : Body mass index is measured as the ratio of weight in kilograms to height in meters squared. Generate a 95% confidence interval estimate of the true BMI.
Explain why equivalent units of production : Explain why equivalent units of production for both direct labor and overhead can be the same as

Reviews

Write a Review

Accounting Basics Questions & Answers

  What types of data collection strategies have you experience

What types of data collection strategies and research design have you experienced, whether it is for work or through educational means?

  Compute the operating profit that will be earned

Willow Golf Course is planning for the coming golfing season. Compute the operating profit that will be earned

  Refer to the whopper to go article in the economist how can

refer to the whopper to go article in the economist. how can burger kings profitability problems be framed in a linear

  Prepare journal entries to reflet the transactions in an

general capital assets are accounted for differently in fund governmental-wide financial statements.a city engaged in

  Statements of income and the balance sheets

Review the annual reports for PepsiCo, Inc. and The Coca-Cola Company in Appendixes A & B, especially the Consolidated Statements of Income and the Balance Sheets on pp. A4, A6, B1, & B2 of Financial Accounting.

  Cardinal corporatation is a trucking firm that operates in

cardinal corporatation is a trucking firm that operates in the md-atlantic states. one of the cardinals major customers

  Prepare the journal entries to record the factory, sales

Prepare a schedule showing the employer's total cost of wages for November by function. Prepare the journal entries to record the factory, sales, and administrative payrolls including the employer's payroll taxes.

  Write a memo discussing the advantages

Write a memo discussing the advantages to a business of arranging a line of credit.

  Freud psychoanalytic theory

One of the very first cases that caught Freud's attention when he was starting to develop his psychoanalytic theory was that of Anna O, a patient of fellow psychiatrist Josef Breuer. Although Freud did not directly treat her, he did thoroughly ana..

  Discuss problems with the early the research done by bsf ltd

Discuss problems with the early the research done by BSF Ltd. Define and discuss the nature of and differences between research and development (R&D). Also, discuss how research and development are accounted for, why the differences, and why firms ..

  A major part of its function is the testing of different

consumers union is a nonprofit organization that provides information and counsel on consumer goods and services. a

  Expenses for the year were 392000 ending equity is 751000

beginning assets were 700000 beginning equity was 225000 revenue for the year was 523000 common stock sold during the

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