Prepare the journal entry for blaha to record the impairment

Assignment Help Accounting Basics
Reference no: EM131915568

Question - Several years ago, Blaha Company purchased Husker Company as a subsidiary. At that time, Blaha recorded goodwill of $100,000 related to the purchase. Since that time, the company has not considered the goodwill to be impaired. However, at the end of 2013, Blaha decides to evaluate the goodwill for impairment because of technological changes in the industry. Husker (which is considered a reporting unit of Blaha) has a book value (including the goodwill) of $800,000. Blaha estimates that the fair value of Husker is $720,000, of which it allocates $660,000 to the Husker's identifiable assets and liabilities.

1. Prepare the journal entry (if any) for Blaha to record the impairment of its goodwill at the end of 2013.

2. Assume that Blaha uses IFRS and has estimated the recoverable amount of Husker (which qualifies as a cash generating unit) to be $740,000. Prepare the journal entry for Blaha to record the impairment of its goodwill at the end of 2013.

Reference no: EM131915568

Questions Cloud

How much she can deduct on her return : Lindsey's 43 shares in Blackstone are worthless. Lindsey wants to know how much she can deduct on her 2012 return
What an it end user might need : Locate a business-worthy IT training video that you think is a good example of what an IT end user might need. You are not required to tag someone else.
Justify the personality diagnosis : Choose a personality Diagnosis. Justify the personality diagnosis. Analyze other information necessary for the accurate diagnosis.
Compute the value of the goodwill : Stillman Company is considering purchasing EKC Company. Required: Compute the value of the goodwill if Stillman pays $1,361,800 for EKC
Prepare the journal entry for blaha to record the impairment : Assume that Blaha uses IFRS and has estimated the recoverable amount of Husker to be $740,000. Prepare the journal entry for Blaha to record the impairment
Describe a major theme of the movie you have selected : Describe a major theme of the movie you have selected using evidence from the movie itself as well as course resources.
Discuss the character neurotic needs and trends : Discuss this character's neurotic needs and trends. What do you think has happened in his/her life that has led to these behaviors?
Prepare entries in general journal to record the transaction : Prepare entries in general journal to record the following transactions in the City of Decator's General Fund general ledger accounts for fiscal year 2012
How the examples from the story support the theme : Write paragraphs that explain how the examples from the story support the theme? Identify one to three examples in the story that support the theme.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Prepare an analysis to show which product to drop

Choice of Products Gulf Coast Fashions sells both designer and moderately priced women's wear in Tampa. Profits have been volatile.

  Explain the applicable tax law regarding employee

Explain the applicable tax law regarding employee compensation and the criteria for deducting expenses Make at least two recommendations for ways

  Compute the amount of realized gross profit to be

swift corp. a capital goods manufacturing business that started on january 4 2012 and operates on a calendar-year basis

  Series of drop-down

Choosing from product options on a series of drop-down menus on a Web page is an example of:

  Explain why you agree or disagree with the given quote

Explain why you agree or disagree with this quote. How would you respond to the professor from Oregon Coastal University?

  From the balance sheet compute the current ratio quick

from the balance sheetcash............................................................. 30000

  Draw a project balance chart

Your company is looking at purchasing a loader at a cost of $125,000. The loader would have a useful life of seven years.

  Target eps adjusted to acquire fye

Use the following information to answer the question below: Assuming 360 days in a year for simplicity, calculate target EPS adjusted to acquirer FYE in the transaction year (FYE June 2008):

  The allowance for uncollectible accounts

Castle Company provides estimates for its uncollectible accounts. The allowance for uncollectible accounts had a credit balance of $17,280 at the beginning of 2011 and a $22,410 credit balance at the end of 2011 (after adjusting entries).

  Compute the amount of pension expense to be reported

Compute the amount of pension expense to be reported for 2015

  Although financial data are sketchy an estimate from a

although financial data are sketchy an estimate from a construction company indicates that adding bed capacity would

  Investing the organization small endowment

Market Efficiency Suppose you are treasurer for your church or other nonprofit organization. You are responsible for investing the organization's small.

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