Mesa Corporation purchased Kwick Company's net assets and assigned goodwill of $82,100 to Reporting Division K....

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Accounting

Mesa Corporation purchased Kwick Company's net assets andassigned goodwill of $82,100 to Reporting Division K. The followingassets and liabilities are assigned to Reporting Division K:
Carrying Amount Fair Value
  Cash $ 16,100 $ 16,100
  Inventory 58,100 73,100
  Equipment 191,000 211,000
  Goodwill 82,100
  Accounts Payable 32,100
32,100
Required:
Determine the amount of goodwill to be reported for Division Kand the amount of goodwill impairment to be recognized, if any, ifDivision K's fair value is determined to be a. $361,000, b.$301,000 and c. $281,000.

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3.6 Ratings (502 Votes)

Goodwill Goodwill impairement loss a 82100 b 32900 49200 c 12900 69200 Carrying amount Fair value Cash 16100 16100 Add Inventory 58100 73100 Add Equipment 191000 211000 Add Goodwill 82100 Less Accounts payable 32100 See Answer

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Mesa Corporation purchased Kwick Company's net assets andassigned goodwill of $82,100 to Reporting Division K. The followingassets and liabilities are assigned to Reporting Division K:Carrying AmountFair Value Cash$16,100$16,100 Inventory58,10073,100 Equipment191,000211,000 Goodwill82,100 Accounts Payable32,10032,100Required:Determine the amount of goodwill to be reported for Division Kand the amount of goodwill impairment to be recognized, if any, ifDivision K's fair value is determined to be a. $361,000, b.$301,000 and c. $281,000.

	Carrying Amount		Fair Value
Cash	$	16,100	$	16,100
Inventory		58,100		73,100
Equipment		191,000		211,000
Goodwill		82,100
Accounts Payable		32,100		32,100

Required:
Determine the amount of goodwill to be reported for Division Kand the amount of goodwill impairment to be recognized, if any, ifDivision K's fair value is determined to be a. $361,000, b.$301,000 and c. $281,000.