Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. a few years ago, high-tech company purchased robot

A few years ago, High-Tech Company purchased Roboto Company, recorded goodwill, and assigned...

50.1K

Verified Solution

Question

Accounting

A few years ago, High-Tech Company purchased Roboto Company, recorded goodwill, and assigned Robotos assets and liabilities, including goodwill, to a new reporting unit called the AI reporting unit.
The AI reporting unit has had negative and declining cash flows recently due to increased competition and the loss of some key personnel. High-Techs management suspects that the AI reporting unit may be impaired and wonders whether it should be written down.
Instructions
If it is more likely than not that the fair value of the reporting unit is less than its carrying value and the reporting unit has goodwill, then a company needs to perform a goodwill impairment test for the reporting unit. Give at least five events and circumstances that could cause the fair value of a reporting unit to be less than its carrying value. Does it appear that High-Tech should perform a goodwill impairment test on its AI reporting unit? Explain.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Finance
1.2K views

How does the decision to finance with a greater percentage of debt versus stock impact: a) shareholders’...

Chemistry
1.2K views

A mole of air is sampled from the atmosphere when the atmospheric pressure is 765 mmHg,...

Biology
1.2K views

Question # 1: What is the difference between an opioid and a narcotic? Question # 2: What...

Biology
1.2K views

caudal most branchial adductor muscle innervation

Medical Sciences
1.2K views

The temperature yesterday was an uncomfortable 98°F. You unwisely chose to play tennis at noon, counting...

Physics
1.2K views

A car driver has rear ended a truck but claims he was driving the speed limit...

Accounting
1.2K views

Scooters plans to sell a standard scooter for $ 120 and a chrome scooter for $...

Biology
1.2K views

Oogenesis the process that creates female gametes is halted at prophase I until puberty Which...

Statistics
1.2K views

A business owner randomly selected 15 days from the last quarter of the most recent...

Algebra
1.2K views

8 If x 5 sin 0 use trigonometric substitution to write 25 x as a...

Accounting
1.2K views

Lee and Company has the following financial data for February: Actual Static Budget Units Sold...

Accounting
1.2K views

journalize the transactions assuming a perpetual inventory system Journalize each of the following...