Advanced Accounting 10th Edition by Thomas Schaefer, Joe Ben Hoyle, Timothy Doupnik

Exercise 55

On January 1, 2010, Innovus, Inc., acquired 100 percent of the common stock of ChipTech Company for $670,000 in cash and other fair-value consideration.ChipTech's fair value was allocated among its net assets as follows:
The December 31, 2011, trial balances for the parent and subsidiary follow:
Required
a.Using Excel, compute consolidated balances for Innovus and ChipTech.Either use a worksheet approach or compute the balances directly.
b.Prepare a second spreadsheet that shows a 2011 impairment loss for the entire amount of goodwill from the ChipTech acquisition.