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

Questions Cloud

What are the operating characteristics for system : Copying times average 8 minutes according to an exponential distribution. What are the operating characteristics for this system?

How much copper (i) sulfide would be produced : If 5.68 g of Cu was added to 3.18 g of S8, How much copper (I) sulfide would be produced?

Letting go : "Letting Go" is a poem written by Daryl Hine, a Canadian poet. As implied by the title of the poem, the author talks about the scenario in whichthe speaker is letting go of his lover, although he still loves his lover very much. Daryl Hine was born i..

Define the role played by dna and rna in genetic diseases : Discuss, in detail, the role played by DNA and RNA in genetic diseases. What are the breakthroughs, if any, in the treatment/management of genetic diseases?

How goodwill is tested for impairment : 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.

What is ph of a 0.050 molar solution of sodium hypoiodite : The ionization constant, Ka, for HOI(aq), hypoiodous acid, is 2.3 × 10-11. What is the pH of a 0.050 molar solution of sodium hypoiodite, which contains the hypoiodite ion?

Find the probability that the poll gets a sample : What is the probability that the poll gets a sample in which fewer than 45% say they do not get enough time for themselves. Show your method.

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.

Create and interpret confidence interval for population mean : A sample of 15 workers reveal the following minutes: 29, 38, 38, 33, 38, 21, 45, 34, 40, 37, 42, 30, 29, 35. Develop 98% confidence interval for the population mean. Interpret your result.

User Account

All Pages