Solution-What amount should be attributed to the parent

What amount should be attributed to the parent

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Reference no: EM133117366

Question - JMR Inc. purchased 85% of ASJ Ltd. for $840,000 cash on January 1, 20X5. All of ASJ's net identifiable assets of $150,000 were equal to their FVs except for the following:

Inventory has an FV of $125,000 in excess of BV.

ASJ has a customer list that is not currently recorded on the financial statements. The FV of the customer list is $258,000.

The value of equity on acquisition was $150,000.

At the end of 20X5, the following information is available:

All inventory acquired at acquisition was sold during the year.

The cash-generating unit was found to be impaired. 100% of the impairment loss is allocated to goodwill. The revised value of goodwill is $425,375.

Assume JMR uses the FVE method. What amount should be attributed to the parent in the SCI column at December 31, 20X5, in the AD schedule?

a) $131,631

b) $136,110

c) $154,860

d) $350,931

Reference no: EM133117366

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What amount should be attributed to the parent

Reference no: EM133117366

Reference no: EM133117366

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