How goodwill is tested for impairment

Assignment Help Accounting Basics
Reference no: EM13129137

On january 1, 2008, line corporation acquired all of the common stock of staff company for 300,000 on the date, staff's identifiable assets had a fair value of 250,000. the assets acquired in the purchase of the staff are considered to be separate reporting unit of line corporation. the carrying value of staff's investment at december 31, 2008, is 310,000. the fair value of the net assets ( excluding goodwill) at the date is 220,000 and the fair value of the reporting unit is determined to be 260,000.

Required: 1) explain how goodwill is tested for impairment for a reporting unit. 2) determine the amount, if any, of impairment loss to be recognized at december 31, 2008.

Reference no: EM13129137

Prepare shortworkings accounts in the books of company

Year 1 production nil. year 2 production 6000.3rd year 24000 4th year 60000 5th year 45000 prepare shortworkings accounts in the books of company for five years.

Problem regarding minimum pretax return

The machine would reduce labor and other costs by $67,000 per year. The company requires a minimum pretax return of 15% on all investment projects. The net present value of

When compared with a debt-to-assets ratio

Revel Company has average daily sales of $5,000, 90% of which are on credit. Receivables are collected 28 days after sales, on average. What is Revel's average accounts rece

Favorable overhead efficiency variance

Assume variable manufacturing overhead is allocated using machine-hours. Give three possible reasons for a favorable overhead efficiency variance. Which reason is most persu

How would you treat the following items in computing ratio

financial analysts typically measure financial leverage as the ratio of debt to equity. However, there is less agreement on how to measure debt, or even equity. How would yo

Integral part of the annual period

Some accountants hold the view that each interim period should stand alone as a basic accounting period, whereas others view each interim period as essentially an integral p

What is the amount of leslie gross estate for federal tax

Leslie died on October 31, 2011. Prior to 2009, Leslie had never made any gifts, but in 2010 she made some transfers. Specifically, on January 10, 2010, Leslie gave her vaca

Determine which step is the most difficult to execute

Investigate the steps involved in the preparation of an advance plan for the distribution of cash in a partnership liquidation to determine which step is the most difficult


Write a Review

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd