Parsons Company acquired 90% of Roxy Company several years ago and recorded goodwill of $200,000 at that date. During 2013 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 2013?
A) $150,000.
B) $200,000.
C) $50,000.
D) $0.
E) $135,000.

Question

Quizplus · Accepted Answer

Goodwill impairment loss of $50,000 should be deducted from the original goodwill of $200,000. Therefore, the consolidated goodwill for 2013 would be $150,000.

Parsons Company Acquired 90% of Roxy Company Several Years Ago