Barbay Ltd has two divisions. It acquired one of them, Tibay Products, on January 1, 2022 for $400,000, and recorded goodwill of $50,750 as a result of that purchase. If at December 31, 2022, Tibay Products will have a recoverable amount of $370,000 and carrying value of its net assets of $355,000 (including goodwill). What amount of loss on impairment of goodwill should Barbay Ltd record in 2022, if any?
Barbay Ltd has two divisions. It acquired one of them, Tibay Products, on January 1, 2022 for $400,000, and recorded goodwill of $50,750 as a result of that purchase. If at December 31, 2022, Tibay Products will have a recoverable amount of $370,000 and carrying value of its net assets of $355,000 (including goodwill). What amount of loss on impairment of goodwill should Barbay Ltd record in 2022, if any?
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
Chapter12: Intangibles
Section: Chapter Questions
Problem 10RE
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Barbay Ltd has two divisions. It acquired one of them, Tibay Products, on January 1, 2022 for $400,000, and recorded
What amount of loss on impairment of goodwill should Barbay Ltd record in 2022, if any?
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