Firm A purchased Firm B for $4,000 when B's total owners' equity was $2,000. Firm A completed the qualitative test for goodwill impairment and determined that it is more likely than not that goodwill may be impaired. B had one asset worth $500 more than the book value. One year after the purchase, Firm B's total market value had dropped to $3,200 and the market value of its net identifiable assets was $2,000. What amount of goodwill impairment loss is recorded?
A. $0
B. $800
C. $400
D. $300
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Firm A purchased Firm B for $4,000 when B's total owners' equity was $2,000. Firm A completed the qualitative test for goodwill impairment ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
On March 1, 2017, Westmorlan Company acquired real estate on which it planned to construct a small office building. The company paid $75,000 in cash.
Answers (1)
The balances of Adventure Travel Service's accounting equation items for the year ended April 30, 2019, are listed below.
Answers (1)
How much money does the United States lose each year due to the non-local resource trade deficit? A) $10 million B) $500 million C) $1 billion D) $300 billion E) $1 trillion
Answers (2)
A company's Accounts Receivable balance at its December 31 year-end is $125,650, and its Allowance for Doubtful Accounts has a credit balance of $328 before year-end adjustment. Its net sales are $572,300.
Answers (1)
Max is the clerk for the Superior Construction Company. He makes out the payroll; prepares all of the payroll checks and reconciles the bank statements for the firm.
Answers (1)
New Questions in Business
The pricing function is an integral part of the companies :
Answers (1)
A company calculates the value of inventory by using the lower-of-market valuation method. which value should the company report for the inventory item for the period?
Answers (1)
To test an herbal treatment for acid reflux disease, 100 volunteers who suffered from mild indigestion were randomly divided into two groups. Each person was given a month's supply of tea bags.
Answers (1)
A facility management pro forma cash flow statement has beginning accounts receivable and payable balances of ¥18,000,000 (Japanese Yen) and ¥20,000,000.
Answers (1)
Which of the following statements about the consumers' responses to rising gasoline prices is correct? a. Because gasoline is a necessity, consumers do not decrease their quantity demanded in either the short run or the long run. b.
Answers (1)