In 2021, Dooling Corporation acquired Oxford Company for $250 million, of which $50 million was recorded as goodwill. Dooling tests for goodwill impairment at the end of each fiscal year. At the end of 2021, Dooling's accountants provide the following information: Book value of Oxford company (including goodwill) ..................... $234.5 million fair value of Oxford Company’s tangible and intangible assets (excluding goodwill) ........................................................... $204.9 million fair value of Oxford Company .................................................. $225 million how much goodwill impairment loss should Dooling Corporation report at the end of 2021?

In 2021, Dooling Corporation acquired Oxford Company for $250 million, of which $50 million was recorded as goodwill. Dooling tests for goodwill impairment at the end of each fiscal year. At the end of 2021, Dooling's accountants provide the following information: Book value of Oxford company (including goodwill) ..................... $234.5 million fair value of Oxford Company’s tangible and intangible assets (excluding goodwill) ........................................................... $204.9 million fair value of Oxford Company .................................................. $225 million how much goodwill impairment loss should Dooling Corporation report at the end of 2021?

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 11PB: On May 1, 2015, Zoe Inc. purchased Branta Corp. for $15,000,000 in cash. They only received...

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On May 1, 2015, Zoe Inc. purchased Branta Corp. for $15,000,000 in cash. They only received $12,000,000 in net assets. In 2016, the market value of the goodwill obtained from Branta Corp. was valued at $4,000,000, but in 2017 it dropped to $2,000,000. Prepare the journal entry for the creation of goodwill and the entry to record any impairments to it in subsequent years.
In 2019, Alliant Corporation acquired Centerpoint Inc. for $300 million, of which $50 million was allocated to goodwill. At the end of 2021, management has provided the following information for a required goodwill impairment test: Fair value of Centerpoint Inc. $ 220 million Book value of Centerpoint’s net assets (excluding goodwill) 200 million Book value of Centerpoint’s net assets (including goodwill) 250 million 1. Determine the amount of the impairment loss. 2. Determine the amount of the impairment loss assuming that the fair value of Centerpoint is $270 million.
In 2019, Alliant Corporation acquired Centerpoint Inc. for $300 million, of which $50 million was allocated to goodwill. At the end of 2021, management has provided the following information for a required goodwill impairment test: Fair value of Centerpoint Inc.$220million Book value of Centerpoint’s net assets (excluding goodwill) 200million Book value of Centerpoint’s net assets (including goodwill) 250million Determine the amount of the impairment loss
In 2018, Martin Corp. acquired Glynco and recorded goodwill of $45 million. Martin considers Glynco a separate reporting unit. By the end of 2021, the net assets (including goodwill) of Glynco are $320 million and its estimated fair value is $260 million. The amount of the impairment loss that Martin would record for goodwill at the end of 2021 is: A) $0. B) $60 million. C) $45 million. D) $15 million.
Manara Corporation acquired Sama Products on January 1, 2019 for $4,000,000, and recorded goodwill of $750,000 as a result of that purchase. At December 31, 2019, Sama Products had a carrying value of $3,500,000, Also, it is determined that the current recoverable amount value of the Sama division is $2,900,000 at that time. What amount of loss on impairment of goodwill should Manara record in 20197 OA S710,000 OB $600,000 OC S480,000 OD S0
On June 30, 2020, Happee Inc. purchased goodwill of P125,000 when it acquired the net assets of Beam Corp. During 2020, Happee incurred additional cost of developing the goodwill, by training Beam employees (P50,000) and hiring additional Beam employees (P25,000). How much should Happee report as goodwill on its December 31, 2020 Financial Position?
In 2019, Alliant Corporation acquired Centerpoint Inc. for $300 million, of which $50 million was allocated to goodwill. At the end of 2021, management has provided the following information for a required goodwill impairment test: Fair value of Centerpoint Inc. $220millionBook value of Centerpoint’s net assets (excluding goodwill) 200millionBook value of Centerpoint’s net assets (including goodwill) 250million Required:1. Determine the amount of the impairment loss.2. Repeat requirement 1 assuming that the fair value of Centerpoint is $270 million.
On September 1, 2019, Winans Corporation acquired Aumont Enterprises for a cash payment of £800,000. At the time of purchase, Aumont’s statement of financial position showed assets of £600,000, liabilities of £200,000, and equity of £400,000. The fair value of Aumont’s assets is estimated to be £800,000. Compute the amount of goodwill acquired by Winans.
IIn 2018, Martin Corp. acquired Glynco and recorded goodwill of $100 million. Martin considers Glynco a separate reporting unit. By the end of 2021, the net assets (including goodwill) of Glynco are $320 million and its estimated fair value is $260 million. The amount of the impairment loss that Martin would record for goodwill at the end of 2021 is:
In2018 Martin Corp.acquired and recorded good will of $45 million .martin consider Glynco a separate reporting unit.by the end of 2021,the assets (including goodwil of Glynco are $320 milion and its estimated fair value is $260million.the amount of the impairment loss that martin would record for goodwill at the end of 2021 is:) 1) $0. 2)$60Million. 3)$45 Million. 4)$15Million.
On September 1, 2019, Simon Corporation acquired Jumbo Enterprises for a cash payment of OMR 970,520. At the time of purchase, Simon Corporation’s balance sheet showed assets of OMR 520,000, liabilities of OMR 100,000, and owner’s equity of OMR 420,000. The fair value of Jumbo’s assets is estimated to be OMR 620,000. Compute the amount of goodwill acquired by Simon Corporation.
Barbay Ltd has two divisions. It acquired one of them, Tibay Products, on January 1, 2022 for $400,000, and recorded goodwill of $50,750 as a result of that purchase. If at December 31, 2022, Tibay Products will have a recoverable amount of $370,000 and carrying value of its net assets of $355,000 (including goodwill). What amount of loss on impairment of goodwill should Barbay Ltd record in 2022, if any? $Answer