purchased Y Company at a cost that resulted In recognition of goodwill at 10 million having an expected benefit period of 10 years. During the first half of 2020, X Company spent an additional 2 million on expenditures designed to maintain goodwill. Due to these expenditures, on December 31, 2020, X Company estimated that the benefit period of goodwill was indefinite.
purchased Y Company at a cost that resulted In recognition of goodwill at 10 million having an expected benefit period of 10 years. During the first half of 2020, X Company spent an additional 2 million on expenditures designed to maintain goodwill. Due to these expenditures, on December 31, 2020, X Company estimated that the benefit period of goodwill was indefinite.
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
Chapter11: Depreciation, Depletion, Impairment, And Disposal
Section: Chapter Questions
Problem 14P: Hunter Company purchased a light truck on January 2, 2019 for 18,000. The truck, which will be used...
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On January 1, 2020, X Company purchased Y Company at a cost that resulted In recognition of goodwill at 10 million having an expected benefit period of 10 years. During the first half of 2020, X Company spent an additional 2 million on expenditures designed to maintain goodwill. Due to these expenditures, on December 31, 2020, X Company estimated that the benefit period of goodwill was indefinite.
In Its December 31, 2020statement of financial position , what amount should X Company report as goodwill?
In Its December 31, 2020
A. 12,000,000
B. 10,000,000
C. 9,500,000
D. 9,000,000
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