Nashs Construction & Paving expanded its business by purchasing Alcott Maintenance, a division that provides road maintenance services. The division was purchased three years ago for $3,227,000 and has been identified as a reporting unit. The net assets for the division including goodwill are as follows: Cash $239,000 Accounts Receivables 301,000 Inventory 838,000 Property, Plant & Equipment 1,019,000 Goodwill 1,193,000 Accounts Payable (120,000 ) Unearned Revenue (75,000 ) Net assets, at carrying amounts $3,395,000 The fair value of the Alcott Maintenance Division reporting unit as a whole is estimated to be $3,125,000. Management determines that the unit’s value in use is $3,231,000. Prepare any appropriate journal entries for goodwill impairment assuming that Nash Construction & Paving is reporting under ASPE. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit List of Accounts Prepare any appropriate journal entries for goodwill impairment assuming that Nash Construction & Paving is reporting under IFRS. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter24: Evaluating Decentralized Operations

Section: Chapter Questions

Problem 5TIF: Last Resort Industries Inc. is a privately held diversified company with five separate divisions...

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Nashs Construction & Paving expanded its business by purchasing Alcott Maintenance, a division that provides road maintenance services. The division was purchased three years ago for $3,227,000 and has been identified as a reporting unit. The net assets for the division including goodwill are as follows:

Cash	$239,000
Accounts Receivables	301,000
Inventory	838,000
Property, Plant & Equipment	1,019,000
Goodwill	1,193,000
Accounts Payable	(120,000	)
Unearned Revenue	(75,000	)
Net assets, at carrying amounts	$3,395,000

The fair value of the Alcott Maintenance Division reporting unit as a whole is estimated to be $3,125,000. Management determines that the unit’s value in use is $3,231,000.

Prepare any appropriate journal entries for goodwill impairment assuming that Nash Construction & Paving is reporting under ASPE. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Account Titles and Explanation	Debit	Credit

List of Accounts

Prepare any appropriate journal entries for goodwill impairment assuming that Nash Construction & Paving is reporting under IFRS. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Account Titles and Explanation	Debit	Credit

List of Accounts

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