In 2013, Azimuth Company purchased a small business for $500,000. The market value of the business's assets were $850,000, and the market value of the liabilities were $400,000. Azimuth recorded goodwill of $50,000 at time of acquisition. At the end of 2014, they measured the goodwill and found it had a remaining value of only $20,000. Please provide the entry needed at year-end 2014.

Question

In 2013, Azimuth Company purchased a small business for $500,000. The market value of the business's assets were $850,000, and the market value of the liabilities were $400,000. Azimuth recorded goodwill of $50,000 at time of acquisition. At the end of 2014, they measured the goodwill and found it had a remaining value of only $20,000. Please provide the entry needed at year-end 2014.
In 2013, Azimuth Company purchased a small business for $500,000. The market value of the business's assets were $850,000, and the market value of the liabilities were $400,000. Azimuth recorded goodwill of $50,000 at time of acquisition. At the end of 2014, they measured the goodwill and found it had a remaining value of only $20,000. Please provide the entry needed at year-end 2014.

Quizplus · Accepted Answer

The Answer of In 2013, Azimuth Company purchased a small business for $500,000. The market value of the business's assets were $850,000, and the market value of the liabilities were $400,000. Azimuth recorded goodwill of $50,000 at time of acquisition. At the end of 2014, they measured the goodwill and found it had a remaining value of only $20,000. Please provide the entry needed at year-end 2014.

In 2013, Azimuth Company Purchased a Small Business for $500,000