Discover the answers you need at Westonci.ca, where experts provide clear and concise information on various topics. Get immediate answers to your questions from a wide network of experienced professionals on our Q&A platform. Experience the ease of finding precise answers to your questions from a knowledgeable community of experts.
Sagot :
Answer:
Purchase Company
RU-1 RU-2 RU-3
Goodwill Impairment loss (gain) $8,300 $44,600 ($383,250)
Explanation:
a) Data and Calculations:
Carrying Amounts
RU-1 RU-2 RU-3
Tangible assets $215,500 $261,000 $158,250
Trademark 257,000
Customer list 154,500
Unpatented technology 232,500
Licenses 100,000
Copyrights 65,500
Goodwill 190,250 187,550 136,500
Liabilities (35,000)
Book values $782,250 $781,050 $360,250
Fair values $773,950 $736,450 $743,500
Goodwill Impairment
loss (gain) $8,300 $44,600 ($383,250)
b) Purchase Company will recognize Goodwill impairment expense for RU-1 and RU-2. It will recognize a Goodwill impairment gain for RU-3. A goodwill impairment gain results when the fair value is higher than the book value of the net realizable assets.
We appreciate your visit. Hopefully, the answers you found were beneficial. Don't hesitate to come back for more information. Your visit means a lot to us. Don't hesitate to return for more reliable answers to any questions you may have. Get the answers you need at Westonci.ca. Stay informed with our latest expert advice.