Parsons Company acquired 90% of Roxy Company several years ago and recorded goodwill of $200,000 at that date. During 2015 an analysis of the fair value of Roxy's assets determined an impairment of goodwill in the amount of $50,000.
At what amount would consolidated goodwill be reported for 2015?
A) $150,000.
B) $200,000.
C) $50,000.
D) $0.
E) $135,000.

Question

Quizplus · Accepted Answer

(Recorded Goodwill $200,000) - (2015 Goodwill Impairment $50,000) = $150,000 Reported Goodwill for 2015

Parsons Company Acquired 90% of Roxy Company Several Years Ago