User Account

All Pages

Prepare the journal entry to record the impairment

Assignment Help Accounting Basics
Reference no: EM131115150

1. Goodwill Impairment Presented below is net asset information related to the Mischa Division of Santana, Inc. The purpose of the Mischa division is to develop a nuclear-powered aircraft. If successful, traveling delays associated with refueling could be substantially reduced. Many other benefits would also occur. To date, management has not had much success and is deciding whether a write-down at this time is appropriate. Management estimated its future net cash flows from the project to be $400 million. Management has also received an offer to purchase the division for $335 million. All identifiable assets' and liabilities' book and fair value amounts are the same.

(a) Prepare the journal entry (if any) to record the impairment at December 31, 2010.

(b) At December 31, 2011, it is estimated that the division's fair value increased to $345 million. Prepare the journal entry (if any) to record this increase in fair value. 

Reference no: EM131115150

Questions Cloud

Calculate the induced voltage at full load : A 100-kW, 230-V shunt generator has Ra = 0.05 Ω and Rf = 57.5 Ω.
Develop a brand scorecard on the product : Choose a specific vehicle industry brand / product. Examples could include brand car models like the Tesla Model S, Ford Focus, etc. and then develop a brand scorecard on that product.
Do you believe they will revisit chemical weapon exploration : With ISIS now competing with other terrorist organizations, do you believe they will revisit chemical weapon exploration? Why, or why not? If they do, how might they use such a weapon?
Classify product costs as direct materials costs : Classification of Product and Period Costs - Classify the following costs incurred by a manufacturer of golf clubs as product costs or period costs. Also classify the product costs as direct materials or conversion costs
Prepare the journal entry to record the impairment : At December 31, 2011, it is estimated that the division's fair value increased to $345 million. Prepare the journal entry (if any) to record this increase in fair value.
What advantages did smitheford pharmaceuticals have : With the passage of NAFTA, what advantages remain by having manufacturing facilities still in Canada according to your research and your own judgment?
Describe the short-run supply curve for this firm : Assume that a price-taking firm in the wheat industry has typical U-shaped SAC and AVC shortrun cost curves and an upward sloping SMC curve. Describe the short-run supply curve for this firm. What is the shutdown price for this firm?
Analyze business considerations presented by the situation : Analyze the business considerations presented by the situation. Compare two radically different approaches to addressing the situation.
Draft your recommendation to management : Analyze whether or not the company should continue manufacturing in Canada or if it should move back to the United States. This requires research into transportation cost estimates from Colorado to Toronto. It also requires analyzing the impact on..

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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