A Player O (1488) Example: Interest Capit x Grades for Preston Porter: ACC X Answered: Exercise 12-9Durin X + s.ucf.edu/courses/1336012/assignments/6285656 Other Current Attempt in Progress On July 31, 2020, Carla Vista Company paid $2,700,000 to acquire all of the common stock of Conchita Incorporated, which became a division (a reporting unit) of Carla Vista. Conchita reported the following balance sheet at the time of the acquisition. Current assets $730,000 Current liabilities $570,000 Noncurrent assets ort 2,400,000 Long-term liabilities 470,000 Total assets $3,130,000 Stockholders' equity 2,090,000 ces Total liabilities and stockholders' equity $3,130,000 It was determined at the date of the purchase that the fair value of the identifiable net assets of Conchita was $2,455,000. Over the next 6 months of operations, the newly purchased division experienced operating losses. In addition, it now appears that it will generate substantial losses for the foreseeable future. At December 31, 2020, Conchita reports the following balance sheet information. Current assets $410,000 Noncurrent assets (including goodwill recognized in purchase) 2,060,000 Current liabilities (700,000 ) Long-term liabilities (500,000 ) Net assets $1,270,000 Finally, it is determined that the fair value of the Conchita Division is $1,850,000. Your answer is correct. Compute the amount of goodwill recognized, if any, on July 31, 2020. (If answer is zero, do not leave answer field blank. Enter O for the amount.) MacBook Pro DII F12 F11 F10 F9 F8 F7 F6 F3 F2 F5 F4 #3 & del 80 4. 3 2 { Y н MI + |/ A Player (1488) Example: Interest Capit X Grades for Preston Porter: AC Answered: Exercise 12-9During X X urses.ucf.edu/courses/1336012/assignments/6285656 Other Book Your answer is incorrect. Assume that fair value of the Conchita Division is $1,224,000 instead of $1,850,000. Determine the impairment loss, if any, to be recorded on December 31, 2020. (If answer is zero, do not leave answer field blank. Enter O for the amount.) $ The impairment loss -199000 eTextbook and Media List of Accpunts Your answer is partially correct. Prepare the journal entry to record the impairment loss, if any, and indicate where the loss would be reported in the income statement. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Credit Debit Account Titles and Explanation 199000 Loss on Impairment 199000 Goodwill Income From Continuing Operations This loss will be reported in income as a separate line item before the subtotal MacBook Pro F12 F11 DII F10 888 F7 F5 F4 F3 & 23 E 11 н G в C 00 S.

A Player O (1488) Example: Interest Capit x Grades for Preston Porter: ACC X Answered: Exercise 12-9Durin X + s.ucf.edu/courses/1336012/assignments/6285656 Other Current Attempt in Progress On July 31, 2020, Carla Vista Company paid $2,700,000 to acquire all of the common stock of Conchita Incorporated, which became a division (a reporting unit) of Carla Vista. Conchita reported the following balance sheet at the time of the acquisition. Current assets $730,000 Current liabilities $570,000 Noncurrent assets ort 2,400,000 Long-term liabilities 470,000 Total assets $3,130,000 Stockholders' equity 2,090,000 ces Total liabilities and stockholders' equity $3,130,000 It was determined at the date of the purchase that the fair value of the identifiable net assets of Conchita was $2,455,000. Over the next 6 months of operations, the newly purchased division experienced operating losses. In addition, it now appears that it will generate substantial losses for the foreseeable future. At December 31, 2020, Conchita reports the following balance sheet information. Current assets $410,000 Noncurrent assets (including goodwill recognized in purchase) 2,060,000 Current liabilities (700,000 ) Long-term liabilities (500,000 ) Net assets $1,270,000 Finally, it is determined that the fair value of the Conchita Division is $1,850,000. Your answer is correct. Compute the amount of goodwill recognized, if any, on July 31, 2020. (If answer is zero, do not leave answer field blank. Enter O for the amount.) MacBook Pro DII F12 F11 F10 F9 F8 F7 F6 F3 F2 F5 F4 #3 & del 80 4. 3 2 { Y н MI + |/ A Player (1488) Example: Interest Capit X Grades for Preston Porter: AC Answered: Exercise 12-9During X X urses.ucf.edu/courses/1336012/assignments/6285656 Other Book Your answer is incorrect. Assume that fair value of the Conchita Division is $1,224,000 instead of $1,850,000. Determine the impairment loss, if any, to be recorded on December 31, 2020. (If answer is zero, do not leave answer field blank. Enter O for the amount.) $ The impairment loss -199000 eTextbook and Media List of Accpunts Your answer is partially correct. Prepare the journal entry to record the impairment loss, if any, and indicate where the loss would be reported in the income statement. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Credit Debit Account Titles and Explanation 199000 Loss on Impairment 199000 Goodwill Income From Continuing Operations This loss will be reported in income as a separate line item before the subtotal MacBook Pro F12 F11 DII F10 888 F7 F5 F4 F3 & 23 E 11 н G в C 00 S.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter13: Investments And Long-term Receivables

Section: Chapter Questions

Problem 21P

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