Bridgeport Company owns a trade name that was purchased in an acquisition of McClellan Compar of $ 3,500,000, but according to GAAP, it is assessed for impairment on an annual basis. To perform must estimate the fair value of the trade name. It has developed the following cash flow estimates r internal information. Each cash flow estimate reflects Bridgeport's estimate of annual cash flows ov name is assumed to have no salvage value after the 12 years. (Assume the cash flows occur at the e Cash Flow Estimate Probability Assessment $380,500 20% 631,600 50% 768 800 30%
Bridgeport Company owns a trade name that was purchased in an acquisition of McClellan Compar of $ 3,500,000, but according to GAAP, it is assessed for impairment on an annual basis. To perform must estimate the fair value of the trade name. It has developed the following cash flow estimates r internal information. Each cash flow estimate reflects Bridgeport's estimate of annual cash flows ov name is assumed to have no salvage value after the 12 years. (Assume the cash flows occur at the e Cash Flow Estimate Probability Assessment $380,500 20% 631,600 50% 768 800 30%
Financial Reporting, Financial Statement Analysis and Valuation
8th Edition
ISBN:9781285190907
Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Chapter8: Investing Activities
Section: Chapter Questions
Problem 16PC
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