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, 2013 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, 2013 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, 2013 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