Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. grand champion inc. purchased americas sweethearts

Grand Champion Inc. purchased Americas Sweethearts Corporation on January 1, 2019. At the time, Americas...

80.2K

Verified Solution

Question

Accounting

Grand Champion Inc. purchased Americas Sweethearts Corporation on January 1, 2019. At the time, Americas Sweethearts had the following assets and liabilities (stated at fair value):

Cash $62,000
Accounts receivable 138,000
Inventory 185,000
Property, plant, and equipment 300,000
Patent 65,000
Accounts payable 200,000
Notes payable 325,000

Grand Champion paid $900,000 for Americas Sweethearts. Assume that Americas Sweethearts is a reporting unit of Grand Champion. At the end of 2020, Americas Sweethearts has a fair value of $720,000 and a book value of $850,000, which includes any goodwill recorded. Of this fair value, $350,000 is attributable to identifiable assets net of (or identifiable net assets) liabilities.

Required:

Calculate the impairment loss of goodwill (if any) and record the appropriate journal entry.

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: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Part B: Which is higher, the initial state energy or the final state energy of the...

Physics
Q

1. How is magnetism no more than electrostatics combined with special relativity? Explain.

Physics
Q

internal control Read the IMA Case, Lack of Internal Controls: Beaumont Independent School District, and choose one of the following schemes: Lack-of-Internal-Controls-Beaumont-Independent-School-District Case.pdf Booster Club...

Accounting
Q

“In my opinion, we ought to stop making our own drums and accept that outside supplier’s...

Accounting
Q

3 A uniform rope of length L and mass m hangs vertically from a rigid...

Physics
Q

105 Two waves are represented by Y a cos t kx and y a2 sin...

Physics
Q

Let Q x be the statement x 1 2x If the domain consists of all...

Basic Math
Q

Mary s score on the Stats midterm was 69 points The class average was 81...

Statistics
Q

You may need to use the appropriate technology to answer this question Consider the experimental...

Algebra
Q

On January 2,2023, Crane Company acquired equipment to be used in its manufacturing operations. The...

Accounting
Q

Cosmo Turner started a new business, Turner Gymnastics, and completed the following transactions during December...

Accounting
Q

Discuss the balance sheet in detail

Accounting