User Account

All Pages

Prepare the journal entry to account for any impairment

Assignment Help Accounting Basics
Reference no: EM133021043

Question - Pete Limited acquired Samson Limited on 1 July 20X7 for cash of $3,500,000. At that date, Samson Limited's net identifiable assets had a fair value of $2,900,000. The fair value of the net identifiable assets of Samson Limited are determined as follows:

Customer List $25,000

Machinery $725,000

Buildings $750,000

Land $1,500,000

$3,000,000

Less: Bank Loan $100,000

Net Assets $2,900,000

At the end of the reporting period of 30 June 20X8, the management of Pete Limited determines that the recoverable amount of the cash-generating unit, which is considered to be Samson Limited, totals $2,400,000. The carrying amount of the net identifiable assets of Samson Limited, which excludes goodwill, has not changed since acquisition and is $2,900,000.

Required -

a) Prepare the journal entry to account for any impairment of goodwill.

b) What is the difference between an unidentifiable intangible asset and an identifiable intangible asset?

Reference no: EM133021043

Questions Cloud

Determine the projected ending balance of cash on hand : These amounted to $42,000 in December and $68,000 in January. Use this information to determine the projected ending balance of cash on hand for January
What is the subscription price : The current price is $99 per share, and there are 42 million shares outstanding. The rights offer would raise a total of $80 million. What is subscription price
Provide the bibliography of resources : Provide the bibliography of resources that will be used in your final paper. This bibliography should have a minimum of 10 outside resources
Prepare acquisition analysis as at July : On 1 July 2021, Xero Ltd acquired 90% of the issued shares of Accounting Ltd for $750,000. Prepare acquisition analysis as at 1 July 2021
Prepare the journal entry to account for any impairment : Pete Limited acquired Samson Limited on 1 July 20X7 for cash of $3,500,000. Prepare the journal entry to account for any impairment of goodwill
Key role in business : Thomas Donaldson has observed that "There are three key reasons why business ethics is not a fad and why ethics plays a key role in business.
Forecast the volatility of the exchange rate : Why it is important to forecast the volatility of the exchange rate?
What is the importance of the swot analysis : What is the importance of the SWOT Analysis? Why is it important to determine the SWOT of the university?
Why might marketers add a product to the product mix : Why might marketers add a product to the product mix

Reviews

Write a Review

Accounting Basics Questions & Answers

  Briefly consider whether or not there is a taxable supply

Advise Billie Bob Billington on the advantages and disadvantages of the two proposals that are currently under consideration

  Determine the share of net income

Determine the share of net income that must be allocated to the two partners assuming a total net income of Br 200,000

  Side kicks has year-end account balances of sales 808900

side kicks has year-end account balances of sales 808900 interest revenue 13500 cost of goods sold 556200 operating

  Should Qualil recommend that the project be purchased

The firm's policy is not to invest in projects that have coefficients of variation greater than 0.8. Should Qualil recommend that the project be purchased

  Discuss prime goals of providing the goods or services

How well do you think the organization performs its prime goals of providing the goods or services that customers want or need the most?

  What is term for sales less variable cost

Suppose a company operates below its break-even point, will the Income Statement show Net Loss or Net Income?

  Write a short memo to ralph sampson describing the analysis

west field corporation makes two different boat anchors-a traditional fishing anchor and a high-end yacht anchor-using

  Prepare journal entries to record events and transactions

Prepare journal entries to record the events and transactions. Be sure you indicate the fund in which they would be recorded

  Describe the implications of the phrase normally

Describe the implications of the phrase normally expected to be liquidated with expendable avail-able financial resources as applied to accruing liabilities for compensated absences in governmental type funds?

  Calculate Abby basis for gain

Calculate Abby's basis for gain, loss, and cost recovery for the portion of her personal residence that was converted to business use

  What are the expected receipts from accounts receivable

The company's accounts receivable payment history is as follows: 30% in the month of sale, What are the expected receipts from accounts receivable

  Prepare journal entry to record the transaction of december

Prepare the journal entry to record the transaction of December 31, 2015, for the Blue Co

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd