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Palestine Company purchases X Company for $840,000 cash on January 1, 2019. The book value...

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Accounting

Palestine Company purchases X Company for $840,000 cash on January 1, 2019. The book value of X Companys net assets, as reflected on its December 31, 2018 balance sheet, is $620,000. An analysis by company that fair value of X company net assets exceeded the book value by $ 80,000.

1- How much goodwill should be recognized by palestine company ?

2- What amount should be reported for goodwill amortization expense for 2019?

3- At december 31-2019, the recoverable amount of X company was 820,000 and the carrying value of net assets 790,000. Journalize the entry to report the impairment loss if any .

4- At december 31-2019, the recoverable amount of X company was 780,000 and the carrying value of net assets 830,000. Journalize the entry to report the impairment loss if any .

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