(8) %24 23 Purchase Company recently acquired several businesses and recognized goodwill in each acquisition. Purchase has allocated the resulting goodwill to its three reporting units: RU-1, RU-2, and RU-3. Purchase opts to skip the qualitative assessment and therefore performs a quantitative goodwill impairment review annually. In its current-year assessment of goodwill, Purchase provides the following individual asset and liability carrying amounts for each of its reporting units: Carrying Amounts RU-2 $291,000 RU-1 RU-3 Tangible assets Trademark $191,000 $154,500 Customer list 00000 128, 250 Unpatented technology Licenses 117,500 Copyrights 71,500 156,550 226,950 Liabilities 000'DET (000') The total fair values for each reporting unit (including goodwill) are S614,800 for RU-1, $802.450 for RU-2, and $676,550 for RU-3. To date, Purchase has reported no goodwill impairments. How much goodwill impairment should Purchase report this year for each of its reporting units? RU-1 RU-2 RU-3 Goodwill impairment loss Mc Graw 11 of 15 Type here to search dy f12 ins prt sc delete f6 6) f5 81 f3 米 & L. backspa 4 %3D 8. 6. 3. 5. 7. pause N. alt ctrl

(8) %24 23 Purchase Company recently acquired several businesses and recognized goodwill in each acquisition. Purchase has allocated the resulting goodwill to its three reporting units: RU-1, RU-2, and RU-3. Purchase opts to skip the qualitative assessment and therefore performs a quantitative goodwill impairment review annually. In its current-year assessment of goodwill, Purchase provides the following individual asset and liability carrying amounts for each of its reporting units: Carrying Amounts RU-2 $291,000 RU-1 RU-3 Tangible assets Trademark $191,000 $154,500 Customer list 00000 128, 250 Unpatented technology Licenses 117,500 Copyrights 71,500 156,550 226,950 Liabilities 000'DET (000') The total fair values for each reporting unit (including goodwill) are S614,800 for RU-1, $802.450 for RU-2, and $676,550 for RU-3. To date, Purchase has reported no goodwill impairments. How much goodwill impairment should Purchase report this year for each of its reporting units? RU-1 RU-2 RU-3 Goodwill impairment loss Mc Graw 11 of 15 Type here to search dy f12 ins prt sc delete f6 6) f5 81 f3 米 & L. backspa 4 %3D 8. 6. 3. 5. 7. pause N. alt ctrl

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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A6 In 2022, Alliant Corporation acquired Centerpoint Incorporated for $339 million, of which $59 million was allocated to goodwill. At the end of 2024, management has provided the following information for a required goodwill impairment test: Fair value of Centerpoint Incorporated $ 247 milli Book value of Centerpoint’s net assets (excluding goodwill) 221 milli Book value of Centerpoint’s net assets (including goodwill) 280 milli Exercise 11-31 (Algo) Part 1 Require 1. Determine the amount of the impairment loss reported in the 2024 income statement. Note: Enter your answer in millions (i.e., 10,000,000 should be entered as 10).d:ononon
Purchase Company recently acquired several businesses and recognized goodwill in each acquisition. Purchase has allocated the resulting goodwill to its three reporting units: RU-1, RU-2, and RU-3. Purchase opts to skip the qualitative assessment and therefore performs a quantitative goodwill impairment review annually. In its current-year assessment of goodwill, Purchase provides the following individual asset and liability carrying amounts for each of its reporting units: Carrying Amounts RU-1 RU-2 RU-3 Tangible assets $209,000 $299,000 $152,250 Trademark 220,000 Customer list 129,000 Unpatented technology 198,000 Licenses 122,000 Copyrights 55,250 Goodwill 193,800 220,850 125,500 Liabilities (31,250) The total fair values for each reporting unit (including goodwill) are $703,050 for RU-1, $807,250 for RU-2, and $650,300 for RU-3. To date, Purchase has reported no goodwill impairments. How much goodwill impairment should…
Purchase Company recently acquired several businesses and recognized goodwill in each acquisition. Purchase has allocated the resulting goodwill to its three reporting units: RU-1, RU-2, and RU-3. Purchase opts to skip the qualitative assessment and therefore performs a quantitative goodwill impairment review annually. In its current-year assessment of goodwill, Purchase provides the following individual asset and liability carrying amounts for each of its reporting units: Carrying Amounts RU-1 RU-2 RU-3 Tangible assets $214,000 $295,000 $207,750 Trademark 192,000 Customer list 110,250 Unpatented technology 183,000 Licenses 94,000 Copyrights 67,500 Goodwill 173,200 201,250 135,000 Liabilities (51,250) The total fair values for each reporting unit (including goodwill) are $613,000 for RU-1, $748,800 for RU-2, and $739,200 for RU-3. To date, Purchase has reported no goodwill impairments. How much goodwill impairment should…
Goodwill Impairment On January 1, 20Y3, The Simmons Group, Inc., purchased the assets of NWS Insurance Co. for $39,457,500, a price reflecting an $5,918,625 goodwill premium. On December 31, 20Y9, The Simmons Group determined that the goodwill from the NWS acquisition was impaired and had a value of only $2,219,484. a. Determine the book value of the goodwill on December 31, 20Y9, prior to making the impairment adjustment.$fill in the blank 1 b. Illustrate the effects on the accounts and financial statements of the December 31, 20Y9, adjustment for the goodwill impairment. For decreases in accounts or outflows of cash, enter your answers as negative numbers. If no account or activity is affected, select "No effect" from the dropdown and leave the corresponding number entry box blank. Balance Sheet Assets = Liabilities + Stockholders' Equity Goodwill + No effect = No effect + Retained Earnings 20Y9 Dec. 31. fill in the blank 6 fill in the blank 7 fill in the…
25 On 1/1/2019 Company A acquired the net assets of Company B for a price of 400000 JD the fair value of identifiable net assets of company B is 300000 JD. On 1/1/2020 the fair value of unit is 380000 JD, carrying value of net assets (excluding goodwill) 310000 JD fair value of identifiable net assets (INA) 330000. Compute impairment loss. Select one: a. 40000 b. 50000 c. 60000 d. No impairment
Destin Company recently acquired several businesses and recognized goodwill in each acquisition. Destin has allocated the resulting goodwill to its three reporting units: Sand Dollar, Salty Dog, and Baytowne. Destin opts to skip the qualitative assessment and therefore performs a quantitative goodwill impairment review annually. In its current year assessment of goodwill, Destin provides the following individual asset and liability values for each reporting unit: Carrying Amounts Fair Values Sand Dollar Tangible assets $ 242,000 $ 260,000 Trademark 216,000 191,600 Customer list 133,500 143,800 Goodwill 181,500 ? Liabilities (52,500 ) (52,500 ) Salty Dog Tangible assets $ 239,000 $ 239,000 Unpatented technology 249,000 195,750 Licenses 102,500 112,900 Goodwill 199,400 ? Baytowne Tangible assets $ 156,000 $ 174,300 Unpatented technology 0 165,750…
Accounting Answer asap Group Ccc-Three Ltd has identified its non-current assets consist of three classes: goodwill, land and plant. Details of items included in each class appear below. Goodwill Total goodwill is $580,000 and no impairments have previously been recorded. $300,000 of this total relates to the purchase of Company F on 1 February 2020. The estimated fair value of this goodwill at 30 June 2021 is $350,000. The remaining $280,000 of the total goodwill relates to the purchase of Company G on 1 January 2021. The estimated recoverable amount of this goodwill at 30 June 2021 is $250,000. Land The land was acquired on 1 June 2016 for $2,100,000. The estimated market value of the land at 30 June 2021 is $2,600,000. However, if the land was sold, disposal costs of $90,000 would be incurred. Plant The plant was originally acquired for $270,000 on 1 September 2017. When purchased, the plant was considered to have a nil residual value and a 10-year useful life for both accounting…
Pelota Company recently acquired several businesses and recognized goodwill in each acquisition. Pelota allocated the resulting goodwill to its three reporting units: R-one, R-two, and R-three. Pelota opts to skip the qualitative assessment and therefore performs a quantitative goodwill impairment review annually. In its current-year assessment of goodwill, Pelota provides the following individual asset and liability carrying amounts for each of its reporting units: Items Carrying Amounts R-one R-two R-three Tangible assets $241,000 $219,000 $159,000 Trademark 199,000 - - Computer software 148,500 - - Unpatented technology - 232,000 - Licenses - 97,500 - Copyrights - - 57,250 Goodwill 150,200 202,850 118,000 Liabilities (32,250) - - The total fair values for each reporting unit (including goodwill) are $682,350 for R-one, $709,300 for R-two, and $653,650 for R-three. To date, Pelota has reported no goodwill impairments. Required: How much goodwill impairment…
please dont provide answer in image format thank you Purchase Company recently acquired several businesses and recognized goodwill in each acquisition. Purchase has allocated the resulting goodwill to its three reporting units: RU-1, RU-2, and RU-3. Purchase opts to skip the qualitative assessment and therefore performs a quantitative goodwill impairment review annually. In its current-year assessment of goodwill, Purchase provides the following individual asset and liability carrying amounts for each of its reporting units: Carrying Amounts RU-1 RU-2 RU-3 Tangible assets $218,000 $220,000 $180,750 Trademark 210,000 Customer list 124,500 Unpatented technology 233,000 Licenses 103,500 Copyrights 55,500 Goodwill 188,300 245,550 135,500 Liabilities (35,750) The total fair values for each reporting unit (including goodwill) are $675,150 for RU-1, $769,050 for RU-2, and $757,750 for RU-3. To date, Purchase has reported no…
Following is information about the reporting unit of Y company as of 12/31/19 The fair value of the reporting unit of Y company is $310,000 and the fair value of identifiable net assets excluding goodwill is $270,000. The total carrying value of the unit is $320,000. The carrying value of identifiable net assets excluding goodwill is $260,000. The carrying value of goodwill is $60,000. Required: compute the goodwill impairment loss if any for 2019. Show work $10,000 $20.000 $40,000 $0
11. An equipment was purchased by BB Company on January 1, 2019 for P5,000,000 with estimated useful life of 10 years and no salvage value. On January 1, 2021, the entity classified the asset as held for sale in accordance with PFRS 5. As of this date the fair value of the asset is P3,300,000 and cost to sell is P100,000. As of December 31, 2021, the entity believes that the criteria for classification as held for sale can no longer be met. The fair value of the equipment is P3,800,000 and cost to sell is P200,000 as of December 31, 2021 while the value in use amounted to 3,200,000. At what amount should the asset be reported in its 2021 statement of financial position?
Harms acquires Blake on January 1, 2015, for $1,000,000. The amount of $800,000 is assigned to identifiable net assets. Goodwill is being impairment tested on December 31, 2019. There have not been any prior impairment adjustments. The following values apply on that date: Estimated fair value of the Blake operating unit . . . . . . . . . . . $1,200,000 Fair value of net identifiable assets (excluding goodwill) . . . . . 1,120,000 Book value of net identifiable assets (including goodwill) . . . . 1,250,000 The book values include those resulting from assignment of fair value to accounts included in the January 1, 2015, acquisition. Is goodwill impaired? If it is, what is the amount of the impairment adjustment?