Keynse Company owns 70% of Subdia Incorporated.The Investment in Subdia qualifies as a business reporting unit under FASB 142,and Keynse has reported goodwill in the amount of $200,000 with respect to its acquisition of Subdia.Subdia's $10 par common stock is currently trading for $92 per share,Subdia's account book balances and related fair values at December 31,2011 are shown below.
Required: Determine if Goodwill has been impaired,and if so,the amount of adjustment that would be required.

Question

Keynse Company owns 70% of Subdia Incorporated.The Investment in Subdia qualifies as a business reporting unit under FASB 142,and Keynse has reported goodwill in the amount of $200,000 with respect to its acquisition of Subdia.Subdia's $10 par common stock is currently trading for $92 per share,Subdia's account book balances and related fair values at December 31,2011 are shown below.
  Required: Determine if Goodwill has been impaired,and if so,the amount of adjustment that would be required.

Quizplus · Accepted Answer

The Answer of Keynse Company owns 70% of Subdia Incorporated.The Investment in Subdia qualifies as a business reporting unit under FASB 142,and Keynse has reported goodwill in the amount of $200,000 with respect to its acquisition of Subdia.Subdia's $10 par common stock is currently trading for $92 per share,Subdia's account book balances and related fair values at December 31,2011 are shown below.
  Required: Determine if Goodwill has been impaired,and if so,the amount of adjustment that would be required.

Keynse Company Owns 70% of Subdia Incorporated