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What is the impairment loss recognized in the current year

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Reference no: EM132483949

Question - Paretti Company purchased Skinner Inc. 10 years ago and recorded $500,000 of goodwill in connection with the acquisition. Skinner is considered to be a reporting unit of Paretti. Last year, Paretti recorded a $300,000 impairment loss on the goodwill attached to the Skinner reporting unit. At the end of the current year, the following information is available before any goodwill impairment is recorded for the current year.

Paretti has equity in the Skinner investment of $4,600,000. This is Paretti's carrying value of the Skinner net assets.

The fair value of the Skinner reporting unit is $4,530,000.

Required -

1. What is the impairment loss recognized in the current year?

2. What is the balance in the goodwill account (related to the Skinner reporting unit) that would be included on the consolidated balance sheet as of the end of the current year?

Reference no: EM132483949

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