Simon Company determines that its goodwill is impaired. It finds that the book value of its reporting unit is $1,490,000, including recorded goodwill of $400,000. The fair value of the identifiable assets of the reporting unit is $1,450,000. What is the amount of goodwill impaired?
Q: Alomar Co., a consolidated enterprise, conducted an impairment review for each of its reporting…
A: Impairment loss = Carrying Value - Fair value Carrying value = $925 Fair value = $1235 - $204 - $411…
Q: Which of the following statements is true regarding goodwill?
A: Goodwill: Goodwill is an intangible asset . This enables the firm to earn more than the other…
Q: ) Prepare the journal entry to account for any impairment of goodwill. b) Assume instead that at…
A: Goodwill: Goodwill is an intangible asset. It is defined as the excess of cost of an acquired…
Q: During the current accounting period, Jack Ltd considered the recognition of the following costs as…
A: Research expenses means the expense incurred for finding some new technology and out come of which…
Q: On December 31, 2023, the entity believed that the criteria for classification as held for sale can…
A: Depreciation represents the reduction in the value of the long-term assets of the company.
Q: amount should be reported as goodwill
A: Goodwill should be recognized as an intangible asset if money or money's worth has been paid for it.…
Q: Their goodwill and intangible assets, net decreased from 2020 to 2021 which is the sum of the…
A: The value of Goodwill of General motors declines in 2021 to 5087 from 5230 in 2020. The decrease is…
Q: Sheffield Corporation purchased Sage Hill Company 3 years ago and at that time recorded goodwill of…
A: Impairment of loss: The impairment loss must be recorded so that the asset is written down. There is…
Q: Waters Corporation purchased Johnson Company 3 years ago and at that time recorded goodwill of…
A: Goodwill: Goodwill is an intangible asset. Goodwill is a reputation of a business which cannot be…
Q: Waters Corporation purchased Johnson Company 3 years ago and at that time recorded goodwill of…
A: Goodwill: Goodwill is an intangible asset. Goodwill is a reputation of a business which cannot be…
Q: WebHelper Inc. acquired 100% of the outstanding stock of Silicon Chips Corporation (SCC) for $46.1…
A: Goodwill is determined as an excess of the cost of a company acquired over the fair value of its net…
Q: Alomar Co., a consolidated enterprise, conducted an impairment review for each of its reporting…
A: Impairment loss is the amount by which the carrying value exceeds the recoverable amount of an…
Q: . The cost incurred were as follows: Cost of trademark, P5,000,000 Expenditure on promoting the new…
A: Intangible assets: Intangible assets are those which does not have any physical existence but have…
Q: In 2014, Alliant Corporation acquired Centerpoint Inc. for $300 million, of which $50 million was…
A:
Q: In 2019, Alliant Corporation acquired Centerpoint Inc. for $300 million, of which $50 million was…
A: Goodwill: Goodwill is an intangible asset. It is defined as the excess of cost of an acquired…
Q: ollowing is information about the reporting unit of Y company as of 12/31/19 The fair value of the…
A: Impairment of assets means reducing the book value of assets when carrying amount is more than…
Q: In 2016, Alliant Corporation acquired Centerpoint, Inc. for $300 million, of which $50 million was…
A: Goodwill: Goodwill is an intangible asset. It is defined as the excess of cost of an acquired…
Q: Simon Company determines that its goodwill is impaired.It finds that its implied goodwill is…
A:
Q: Cheyenne Corporation purchased Sage Hill Company 3 years ago and at that time recorded goodwill of…
A: Loss on impairment = Carrying value of goodwill - Fair value of goodwill
Q: Required: a) Prepare the journal entry to account for any impairment of goodwill. b) Assume…
A: Goodwill: Goodwill is an intangible asset. It is defined as the excess of cost of an acquired…
Q: s identified its non-current assets consist of three classes: goodwill, land and plant. Details of…
A: Depereciation of plant =$300,000/10 =$300,000 per year =$1,500 per month book value of plant as on…
Q: Alomar Co., a consolidated enterprise, conducted an impairment review for each of its reporting…
A:
Q: Alomar Co., a consolidated enterprise, conducted an impairment review for each of its reporting…
A: Impairment losses arise whenever the carrying value of the assets is more than its fair value.…
Q: Alomar Co., a consolidated enterprise, conducted an impairment review for each of its reporting…
A: Introduction: "Goodwill" is an accounting term that refers to the difference between a company's…
Q: Ayayai Corporation purchased Kingbird Company 3 years ago and at that time recorded goodwill of…
A: Implied value of Goodwill = Fair value of Division- Fair value of Kingbird Division’s net assets…
Q: During the year, Endeavor Co. received an intangible asset from Allmight Co. in an exchange…
A: INTANGIBLE ASSETS:- Intangible assets are those assets which don't have any physical substance…
Q: n 2019, Alliant Corporation acquired Centerpoint Inc. for $300 million, of which $50 million was…
A: Impairment Loss - It refers to the decrease in the value of long-lived assets due to obsolescence,…
Q: Determine whether there is any goodwill impairment and if so please calculate the goodwill…
A: When the book value or previously recorded value of the goodwill of any entity is lower than the…
Q: Alomar Co., a consolidated enterprise, conducted an impairment review for each of its reporting…
A: An impairment loss is recognized when the carrying value or the book value of the asset is more than…
Q: in 2019, Alliant Corporation acquired Centerpoint Inc. for $390 million, of which $60 million was…
A: The impairment loss is decrease in carrying value to present assets at their fair value.
Q: GABI Company incurred P90,000 of depreciation for the year. 80% relates to the firm's production…
A: Solution 1: Depreciation related to production facilities = P90,000*80% = P72,000 A review of…
Q: In 2019, Alliant Corporation acquired Centerpoint Inc. for $300 million, of which $50 million was…
A: Impairment loss refers to a decrease in the company's asset value permanently, usually in fixed and…
Q: On October 1, 2007, JIMMY Acquired the net assets of NEUTRON which resulted to goodwill. When JIMMY…
A: IFRS 3 It stands for International Financial Reporting Standard 3 which states the…
Q: Ajax is reviewing its previous 100% acquisition of Baxter to determine if there is goodwill…
A: Goodwill means market reputation which increase the overall firm’s value. It depends upon various…
Q: 11. ABC Company owns a noncurrent asset, which is damaged and is to be reviewed for impairment, to…
A: The financial position of the company can be arrived from the income statement prepared by the…
Q: Waters Corporation purchased Johnson Company 3 years ago and at that time recorded goodwill of…
A: Intangible Assets: These are the long-term assets having no physical existence. However, the…
Q: Alomar Co., a consolidated enterprise, conducted an impairment review for each of its reporting…
A: 1. Fair Value of Reporting unit $1,028 Fair value of net assets excluding goodwill:…
Q: Alomar Co., a consolidated enterprise, conducted an impairment review for each of its reporting…
A: The excess of the amount paid by the company during the purchase of another company is termed as…
Q: omar Co., a consolidated enterprise, conducted an impairment review for each of its reporting units.…
A: Impairment is the reduction in the value of a company's fixed assets and intangible assets. When the…
Q: determine the goodwill impairment Net book value of Devon 3,600,000 Goodwill…
A: Please see the next step for the solution
Q: Goodwill Impairment On January 1, 20Y3, The Simmons Group, Inc., purchased the assets of NWS…
A: Impairment of Goodwill: The term 'Impairment' simply means deterioration in the value of the…
Q: Wildhorse Corporation acquired End-of-the-World Products on January 1, 2020 for $6250000, and…
A: Solution:- Basic information given in the problem as follows under:- End-of-the-World Products on…
Q: Carla Vista Corporation acquired End-of-the-World Products on January 1, 2020 for $6150000, and…
A: Given information Recorded goodwill = $1,150,000 fair value = $4,482,000 Carrying value =…
Q: a. Determine the amount of any goodwill impairment for Alomar's Sellers reporting unit. b. After…
A: Goodwill: Goodwill is an intangible asset. It is defined as the excess of cost of an acquired…
Q: A company purchased equipment for P5,000,000 on January 1, 20X8. The equipment had a useful life of…
A: The investments made by a company, whether a fixed asset investment or a debt investment or an…
Q: Destin Company recently acquired several businesses and recognized goodwill in each acquisition.…
A: Consolidated financial statements: When an investor company holds above 50% in the outstanding stock…
Q: On December 31, an entity had a reporting unit that had a book value of $3,450,000, including…
A: Under the new standard, goodwill needs to be impaired if the reporting unit's carrying value is more…
Simon Company determines that its
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
- Simon Company determines that its goodwill is impaired.It finds that its implied goodwill is $360,000 and itsrecorded goodwill is $400,000. The fair value of its identifiableassets is $1,450,000. What is the amount of goodwillimpaired?On December 31, an entity had a reporting unit that had a book value of $3,450,000, including goodwillof $225,000. As part of its annual review of goodwill impairment, the entity determined that the fair value of the reporting unit was $3,310,000. The entity assigned $3,170,000 of the reporting units fair value to its assets and liabilities other than goodwill. What is the goodwill impairment loss to be reported on December 31 under the new standardOn December 31, an entity had a reporting unit that had a book value of $3,450,000, including goodwill of $225,000. As part of its annual review of goodwill impairment, the entity determined that the fair value of the reporting unit including goodwill was $3,310,000. What is the goodwill impairment loss to be reported on December 31? a. $0 b. $85,000 c. $140,000 d. $225,000
- Following is information about the reporting unit of Y company as of 12/31/19 The fair value of the reporting unit of Y company is $310,000 and the fair value of identifiable net assets excluding goodwill is $270,000. The total carrying value of the unit is $320,000. The carrying value of identifiable net assets excluding goodwill is $260,000. The carrying value of goodwill is $60,000. Required: compute the goodwill impairment loss if any for 2019. Show work $10,000 $20.000 $40,000 $0General Motors. In 2020, their Goodwill was 5230 and in 2021 it was 5087. Their goodwill is not amortized but tested for impairment annually. The testing determines whether it is more likely than not that an impairment exists. If it doesn’t exist then they do a quantitative impairment test, which carries out the amount of reporting of the amount of the unit exceeding its fair value. Goodwill on a balance sheet is the intangible assets that is created when a company acquires another company for a price more than its net asset value (Hargrave, 2022). I don’t feel they disclosed enough information for others to know about their goodwill. Their goodwill and intangible assets, net decreased from 2020 to 2021 which is the sum of the carrying amounts of the intangible assets on the balance sheet, net of the accumulated amortization and impairment charges. Do you agree? Please explain.On January 1, 20Y3, The Simmons Group, Inc., purchased the assets of NWS Insurance Co. for $40,610,000, a price reflecting an $4,061,000 goodwill premium. On December 31, 20Y9, The Simmons Group determined that the goodwill from the NWS acquisition was impaired and had a value of only $1,522,875. Determine the book value of the goodwill on December 31, 20Y9, prior to making the impairment adjustment.
- Determine whether there is any goodwill impairment and if so please calculate the goodwill impairment loss. On the date of acquisition, the following information is available: Fair Value of the reporting unit is $720,000 Fair Value of identifiable net assets $601,000 Goodwill $119,000 One year later at the first periodic review date the following information is available: Fair value of the reporting unit is $788,000 Carrying value of the reporting unit (includes goodwill) $889,000 Fair Value of identifiable net assets $766,000 $22,000Sheffield Corporation purchased Sage Hill Company 3 years ago and at that time recorded goodwill of $460,000. The Sage Hill Division’s net assets, including the goodwill, have a carrying amount of $840,000. The fair value of the division is estimated to be $792,000.Prepare Sheffields' journal entry, if necessary, to record impairment of the goodwill.Cheyenne Corporation purchased Sage Hill Company 3 years ago and at that time recorded goodwill of $320,000. The Sage Hill Division’s net assets, including the goodwill, have a carrying amount of $640,000. The fair value of the division is estimated to be $840,000.Prepare Cheyennes' journal entry, if necessary, to record impairment of the goodwill.
- Waters Corporation purchased Johnson Company 3 years ago and at that time recorded goodwill of $400,000. The Johnson Division’s net assets, including the goodwill, have a carrying amount of $800,000. The fair value of the division is estimated to be $1,000,000. Assume that the fair value of the division is estimated to be $750,000 and the implied goodwill is $350,000. Prepare Waters’ journal entry, if necessary, to record impairment of the goodwill.Waters Corporation purchased Johnson Company 3 years ago and at that time recorded goodwill of $400,000. The Johnson Division's net assets, including the goodwill, have a carrying amount of $800,000. The fair value of the division is estimated to be $1,000,000. Prepare Waters' journal entry, if necessary, to record impairment of the goodwill.In 2022, Mao Li Corporation determined that a production machine used in its operations was impaired and an impairment loss of HK$110,000 was recognized. In 2023, the fair value of the asset increased by HK$170,000 due to an unexpected resurgence in demand for the products the machine was designed to produce. How would the gain due to increase in fair value be recognized in 2023 under IFRS?