Goodwill : It is the excess payment made over and above the fair value of assets acquired by the parent company to the subsidiary company against the assets and liabilities acquired. Amount of goodwill to be reported and amount of goodwill impairment, if any, if the total fair value of the reporting unit is estimated to be $ 580 , 000

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Answer 1

Question

Chapter 1, Problem 1.18E

a.

To determine

Concept Introduction:

Goodwill: It is the excess payment made over and above the fair value of assets acquired by the parent company to the subsidiary company against the assets and liabilities acquired.

Amount of goodwill to be reported and amount of goodwill impairment, if any, if the total fair value of the reporting unit is estimated to be $580,000

b.

To determine

Concept Introduction:

Goodwill: It is the excess payment made over and above the fair value of assets acquired by the parent company to the subsidiary company against the assets and liabilities acquired.

Amount of goodwill to be reported and amount of goodwill impairment, if any, if the total fair value of the reporting unit is estimated to be $540,000

c.

To determine

Concept Introduction:

Goodwill: It is the excess payment made over and above the fair value of assets acquired by the parent company to the subsidiary company against the assets and liabilities acquired.

Amount of goodwill to be reported and amount of goodwill impairment, if any, if the total fair value of the reporting unit is estimated to be $500,000

d.

To determine

Concept Introduction:

Goodwill: It is the excess payment made over and above the fair value of assets acquired by the parent company to the subsidiary company against the assets and liabilities acquired.

Amount of goodwill to be reported and amount of goodwill impairment, if any, if the total fair value of the reporting unit is estimated to be $500,000

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Levi and Peter's Athletic Emporium (LPAE) provided the following information. Fair value of the reporting unit, including goodwill $500 Fair value of the net assets, excluding goodwill $400 Book value of net assets, excluding goodwill $600 Add: Book value of goodwill 300 Book value of the reporting unit, including goodwill $900 Note that LPAE performs the quantitative test on at least an annual basis. The qualitative assessment of goodwill reveals that it is more likely than not that the goodwill is impaired. Is there a goodwill impairment loss? Prepare any required journal entries.Requirements: Conduct the impairment test for goodwill at the end of the year.Record any impairment loss on the goodwill

Topic: Intangible Assets (Goodwill) England Company assembled the following data relative to a certain entity in determining the amount to be paid for net assets and goodwill: Assets at fair value before goodwill 2,600,000 Liabilities 900,000 Shareholders' Equity 1,700,000 Net Earnings after elimination of unusual or infrequent items: 2017 200,000 2018 230,000 2019 300,000 2020 250,000 2021 270,000 Required: Calculate the amount of goodwill under the following: 1. Average earnings are capitalized at 10%. 2. A return of 8% is considered normal on net assets at fair value. Excess earnings are capitalized at 15%. 3. A return of 10% is considered normal on net assets at fair value. Goodwill is measured at 5 years excess earnings. 4. A return of 10% is considered…

Accounting Answer asap Group Ccc-Three Ltd has identified its non-current assets consist of three classes: goodwill, land and plant. Details of items included in each class appear below. Goodwill Total goodwill is $580,000 and no impairments have previously been recorded. $300,000 of this total relates to the purchase of Company F on 1 February 2020. The estimated fair value of this goodwill at 30 June 2021 is $350,000. The remaining $280,000 of the total goodwill relates to the purchase of Company G on 1 January 2021. The estimated recoverable amount of this goodwill at 30 June 2021 is $250,000. Land The land was acquired on 1 June 2016 for $2,100,000. The estimated market value of the land at 30 June 2021 is $2,600,000. However, if the land was sold, disposal costs of $90,000 would be incurred. Plant The plant was originally acquired for $270,000 on 1 September 2017. When purchased, the plant was considered to have a nil residual value and a 10-year useful life for both accounting…

Answer 2

Question

Chapter 1, Problem 1.18E

a.

To determine

Concept Introduction:

Goodwill: It is the excess payment made over and above the fair value of assets acquired by the parent company to the subsidiary company against the assets and liabilities acquired.

Amount of goodwill to be reported and amount of goodwill impairment, if any, if the total fair value of the reporting unit is estimated to be $580,000

b.

To determine

Concept Introduction:

Goodwill: It is the excess payment made over and above the fair value of assets acquired by the parent company to the subsidiary company against the assets and liabilities acquired.

Amount of goodwill to be reported and amount of goodwill impairment, if any, if the total fair value of the reporting unit is estimated to be $540,000

c.

To determine

Concept Introduction:

Goodwill: It is the excess payment made over and above the fair value of assets acquired by the parent company to the subsidiary company against the assets and liabilities acquired.

Amount of goodwill to be reported and amount of goodwill impairment, if any, if the total fair value of the reporting unit is estimated to be $500,000

d.

To determine

Concept Introduction:

Goodwill: It is the excess payment made over and above the fair value of assets acquired by the parent company to the subsidiary company against the assets and liabilities acquired.

Amount of goodwill to be reported and amount of goodwill impairment, if any, if the total fair value of the reporting unit is estimated to be $500,000

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Answer 3

Question

Chapter 1, Problem 1.18E

a.

To determine

Concept Introduction:

Goodwill: It is the excess payment made over and above the fair value of assets acquired by the parent company to the subsidiary company against the assets and liabilities acquired.

Amount of goodwill to be reported and amount of goodwill impairment, if any, if the total fair value of the reporting unit is estimated to be $580,000

b.

To determine

Concept Introduction:

Goodwill: It is the excess payment made over and above the fair value of assets acquired by the parent company to the subsidiary company against the assets and liabilities acquired.

Amount of goodwill to be reported and amount of goodwill impairment, if any, if the total fair value of the reporting unit is estimated to be $540,000

c.

To determine

Concept Introduction:

Goodwill: It is the excess payment made over and above the fair value of assets acquired by the parent company to the subsidiary company against the assets and liabilities acquired.

Amount of goodwill to be reported and amount of goodwill impairment, if any, if the total fair value of the reporting unit is estimated to be $500,000

d.

To determine

Concept Introduction:

Goodwill: It is the excess payment made over and above the fair value of assets acquired by the parent company to the subsidiary company against the assets and liabilities acquired.

Amount of goodwill to be reported and amount of goodwill impairment, if any, if the total fair value of the reporting unit is estimated to be $500,000

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Answer 4

Question

Chapter 1, Problem 1.18E

a.

To determine

Concept Introduction:

Goodwill: It is the excess payment made over and above the fair value of assets acquired by the parent company to the subsidiary company against the assets and liabilities acquired.

Amount of goodwill to be reported and amount of goodwill impairment, if any, if the total fair value of the reporting unit is estimated to be $580,000

b.

To determine

Concept Introduction:

Goodwill: It is the excess payment made over and above the fair value of assets acquired by the parent company to the subsidiary company against the assets and liabilities acquired.

Amount of goodwill to be reported and amount of goodwill impairment, if any, if the total fair value of the reporting unit is estimated to be $540,000

c.

To determine

Concept Introduction:

Goodwill: It is the excess payment made over and above the fair value of assets acquired by the parent company to the subsidiary company against the assets and liabilities acquired.

Amount of goodwill to be reported and amount of goodwill impairment, if any, if the total fair value of the reporting unit is estimated to be $500,000

d.

To determine

Concept Introduction:

Goodwill: It is the excess payment made over and above the fair value of assets acquired by the parent company to the subsidiary company against the assets and liabilities acquired.

Amount of goodwill to be reported and amount of goodwill impairment, if any, if the total fair value of the reporting unit is estimated to be $500,000

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Answer 5

Chapter 1, Problem 1.18E

a.

To determine

Concept Introduction:

Goodwill: It is the excess payment made over and above the fair value of assets acquired by the parent company to the subsidiary company against the assets and liabilities acquired.

Amount of goodwill to be reported and amount of goodwill impairment, if any, if the total fair value of the reporting unit is estimated to be $580,000

b.

To determine

Concept Introduction:

Goodwill: It is the excess payment made over and above the fair value of assets acquired by the parent company to the subsidiary company against the assets and liabilities acquired.

Amount of goodwill to be reported and amount of goodwill impairment, if any, if the total fair value of the reporting unit is estimated to be $540,000

c.

To determine

Concept Introduction:

Goodwill: It is the excess payment made over and above the fair value of assets acquired by the parent company to the subsidiary company against the assets and liabilities acquired.

Amount of goodwill to be reported and amount of goodwill impairment, if any, if the total fair value of the reporting unit is estimated to be $500,000

d.

To determine

Concept Introduction:

Goodwill: It is the excess payment made over and above the fair value of assets acquired by the parent company to the subsidiary company against the assets and liabilities acquired.

Amount of goodwill to be reported and amount of goodwill impairment, if any, if the total fair value of the reporting unit is estimated to be $500,000

Answer 6

Chapter 1, Problem 1.18E

a.

To determine

Concept Introduction:

Goodwill: It is the excess payment made over and above the fair value of assets acquired by the parent company to the subsidiary company against the assets and liabilities acquired.

Amount of goodwill to be reported and amount of goodwill impairment, if any, if the total fair value of the reporting unit is estimated to be $580,000

Answer 7

Chapter 1, Problem 1.18E

a.

To determine

Concept Introduction:

Goodwill: It is the excess payment made over and above the fair value of assets acquired by the parent company to the subsidiary company against the assets and liabilities acquired.

Amount of goodwill to be reported and amount of goodwill impairment, if any, if the total fair value of the reporting unit is estimated to be $580,000

Answer 8

b.

To determine

Concept Introduction:

Goodwill: It is the excess payment made over and above the fair value of assets acquired by the parent company to the subsidiary company against the assets and liabilities acquired.

Amount of goodwill to be reported and amount of goodwill impairment, if any, if the total fair value of the reporting unit is estimated to be $540,000

Answer 9

b.

To determine

Concept Introduction:

Goodwill: It is the excess payment made over and above the fair value of assets acquired by the parent company to the subsidiary company against the assets and liabilities acquired.

Amount of goodwill to be reported and amount of goodwill impairment, if any, if the total fair value of the reporting unit is estimated to be $540,000

Answer 10

c.

To determine

Concept Introduction:

Goodwill: It is the excess payment made over and above the fair value of assets acquired by the parent company to the subsidiary company against the assets and liabilities acquired.

Amount of goodwill to be reported and amount of goodwill impairment, if any, if the total fair value of the reporting unit is estimated to be $500,000

Answer 11

c.

To determine

Concept Introduction:

Goodwill: It is the excess payment made over and above the fair value of assets acquired by the parent company to the subsidiary company against the assets and liabilities acquired.

Amount of goodwill to be reported and amount of goodwill impairment, if any, if the total fair value of the reporting unit is estimated to be $500,000

Answer 12

d.

To determine

Concept Introduction:

Goodwill: It is the excess payment made over and above the fair value of assets acquired by the parent company to the subsidiary company against the assets and liabilities acquired.

Amount of goodwill to be reported and amount of goodwill impairment, if any, if the total fair value of the reporting unit is estimated to be $500,000

Answer 13

d.

To determine

Concept Introduction:

Goodwill: It is the excess payment made over and above the fair value of assets acquired by the parent company to the subsidiary company against the assets and liabilities acquired.

Amount of goodwill to be reported and amount of goodwill impairment, if any, if the total fair value of the reporting unit is estimated to be $500,000

Answer 14

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Answer 15

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Answer 16

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Answer 17

Ch. 1 - What types of circumstances would encourage...Ch. 1 - How would the decision to dispose of a segment of...Ch. 1 - Prob. 1.3Q Ch. 1 - Prob. 1.4Q Ch. 1 - Prob. 1.5Q Ch. 1 - Prob. 1.6Q Ch. 1 - Prob. 1.7Q Ch. 1 - Prob. 1.8Q Ch. 1 - Prob. 1.9Q Ch. 1 - Prob. 1.10Q

Solution Summary: The author explains that goodwill is the excess payment made over and above the fair value of assets acquired by the parent company to the subsidiary company against the assets and liabilities acquired.

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