Connection with the impaired value of the goodwill

Assignment Help Financial Accounting

Reference no: EM13745950

Tremendous Corporation has acquired a number of other companies over the years. As a result, one of its reporting units (its plastics division) has reported goodwill of $600,000. Tremendous is currently making its annual test to determine if goodwill has possibly been impaired. The plastics division has a book value of $4.2 million but a fair value of only $4.1 million. At that date, that division has the following assets and no liabilities: land (book value of $1.2 million and fair value of $1.3 million), buildings (net book value of $2 million and fair value of $2.2 million), equipment (net book value of $400,000 and fair value of $500,000), and goodwill (book value of $600,000 but fair value is not known). What loss should be recognized in connection with the impaired value of the goodwill?

Reference no: EM13745950

Questions Cloud

Reported on consolidated balance sheet for current assets : Big Company owns 100 percent of the outstanding shares of Little. During the current year, Big sold inventory costing $90,000 to Little for $100,000. Although this inventory has now been sold to an outside party, Little has not repaid Big.

Financial prospectus expectations : Prepare a 1,950- to 2,500-word paper with the following components of a financial prospectus for your venture. The Financial Prospectus must include the information you provided in the Venture Concepts Paper and Venture Budgeting and Forecasting P..

Describe the relative distances : Gene A crosses over 16.5 percent of the time with gene B. Gene B crosses over 4.5 percent of the time with gene C. Describe the relative distances between them

Struggle for power at ramsey electronics : The Struggle for Power at Ramsey Electronics - Write a report in which you present the identification and analysis of an organisational behaviour problem evident in a given case study.

Connection with the impaired value of the goodwill : Tremendous Corporation has acquired a number of other companies over the years. As a result, one of its reporting units (its plastics division) has reported goodwill of $600,000. Tremendous is currently making its annual test to determine if goodwill..

Describes the role of quality oversight organizations : Describes the role of quality oversight organizations. Why are Electronic Medical Records important

Intrinsic and extrinsic limiting factors : Intrinsic and Extrinsic Limiting Factors-Consider the meaning of the term "ecology." How do the ideas of energy and chemical cycles, community structure, biodiversity and succession fit together to form the basis of the way the natural world works

Describe the auditors responsibility for fraud detection : Audit Procedures for fraud detection in the revenue process. Assume that you have been assigned to the audit of Itakian Home Stores., which sells Italian furniture and home furnishings in two retail shops and on a website for online sales. Describe t..

Compute the issue price of the bonds : Whiteside Corporation issues $603,000 of 9% bonds, due in 12 years, with interest payable semiannually. At the time of issue, the market rate for such bonds is 10%. Compute the issue price of the bonds

User Account

All Pages