On December 31, 2021, Global Corporation acquired Local Company and recorded goodwill of...

80.2K

Verified Solution

Question

Accounting

image

On December 31, 2021, Global Corporation acquired Local Company and recorded goodwill of $90,000. Global maintains the operation of Local as a division after the acquisition. The Local Division's net assets, including goodwill, have a carrying amount of $420,000 on December 31,2022 . The fair value of the division is estimated to be $380,000. There has been no adjustment of goodwill since the acquisition of Local. How much is the impairment loss for goodwill on December 31, 2022? Global has December 31 as a fiscal-year end. On December 31, 2021, Global Corporation acquired Local Company and recorded goodwill of $90,000. Global maintains the operation of Local as a division after the acquisition. The Local Division's net assets, including goodwill, have a carrying amount of $420,000 on December 31,2022 . The fair value of the division is estimated to be $380,000. There has been no adjustment of goodwill since the acquisition of Local. How much is the impairment loss for goodwill on December 31, 2022? Global has December 31 as a fiscal-year end

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