On February 1,2X09,Bodner,Inc.acquired a 100% interest in Bolenski Company by paying $34 million for 100% of the outstanding stock of Bolenski Company.The book value of the net assets amounted to $25 million,but an independent appraiser valued the printing press at $1.5 million over its book value.The book value and fair value of the remaining assets and liabilities were equal.
Required:
1.On February 1,2X09,prepare the eliminating entry by Bodner,Inc.after the acquisition.
2.What will occur if the goodwill decreases in value after the acquisition?

Question

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The Answer of On February 1,2X09,Bodner,Inc.acquired a 100% interest in Bolenski Company by paying $34 million for 100% of the outstanding stock of Bolenski Company.The book value of the net assets amounted to $25 million,but an independent appraiser valued the printing press at $1.5 million over its book value.The book value and fair value of the remaining assets and liabilities were equal.
Required:
1.On February 1,2X09,prepare the eliminating entry by Bodner,Inc.after the acquisition.
2.What will occur if the goodwill decreases in value after the acquisition?