At a postacquisition impairment evaluation date, the following information exists for an acquired subsidiary that is a reporting unit:
Required
a. What is the implied fair value of goodwill?
b. What is the impairment loss to be recognized, if any?
c. Prepare the parent's appropriate adjusting entry, if necessary. (Assume that the parent had acquired common stock and used non-push-down accounting.)
d. If an impairment evaluation is performed one year later and the goodwill's implied fair value is $200,000 at that date, what adjusting entry would be made by the parent?

Question

At a postacquisition impairment evaluation date, the following information exists for an acquired subsidiary that is a reporting unit:
  Required
a. What is the implied fair value of goodwill?
b. What is the impairment loss to be recognized, if any?
c. Prepare the parent's appropriate adjusting entry, if necessary. (Assume that the parent had acquired common stock and used non-push-down accounting.)
d. If an impairment evaluation is performed one year later and the goodwill's implied fair value is $200,000 at that date, what adjusting entry would be made by the parent?

Quizplus · Accepted Answer

The Answer of At a postacquisition impairment evaluation date, the following information exists for an acquired subsidiary that is a reporting unit:
  Required
a. What is the implied fair value of goodwill?
b. What is the impairment loss to be recognized, if any?
c. Prepare the parent's appropriate adjusting entry, if necessary. (Assume that the parent had acquired common stock and used non-push-down accounting.)
d. If an impairment evaluation is performed one year later and the goodwill's implied fair value is $200,000 at that date, what adjusting entry would be made by the parent?

At a Postacquisition Impairment Evaluation Date, the Following Information Exists