On 1 July 2022, Surf Ltd acquired all the share capital in Turf Ltd for $472,000. At that date, Turf Ltd's equity consisted of: Share Capital 300,000 General Reserve 96,000 Retained Earnings 56,000 At 30 June 2023, goodwill was identified as being impaired by 10%. At 1 July 2022, all the identifiable net assets of Turf Ltd were recorded at fair value. Required: Record the elimination entry in Surf Ltd's accounts and record the impairment of goodwill

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 18E
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On 1 July 2022, Surf Ltd acquired all the share capital in Turf Ltd for $472,000. At that date, Turf Ltd's equity consisted of:
Share Capital 300,000
General Reserve 96,000
Retained Earnings 56,000
At 30 June 2023, goodwill was identified as being impaired by 10%.
At 1 July 2022, all the identifiable net assets of Turf Ltd were recorded at fair value.
Required:
Record the elimination entry in Surf Ltd's accounts and record the impairment of goodwill
Transcribed Image Text:On 1 July 2022, Surf Ltd acquired all the share capital in Turf Ltd for $472,000. At that date, Turf Ltd's equity consisted of: Share Capital 300,000 General Reserve 96,000 Retained Earnings 56,000 At 30 June 2023, goodwill was identified as being impaired by 10%. At 1 July 2022, all the identifiable net assets of Turf Ltd were recorded at fair value. Required: Record the elimination entry in Surf Ltd's accounts and record the impairment of goodwill
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