Groft Company purchased Strobe Companys net assets and assigned them to four separate reporting units. Total goodwill

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Groft Company purchased Strobe Company€™s net assets and assigned them to four separate reporting units. Total goodwill of $186,000 is assigned to the reporting units as indicated:

Required
Determine the amount of goodwill that Groft should report at year-end. Show how you computedit.

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Advanced Financial Accounting

ISBN: 978-0078025624

10th edition

Authors: Theodore E. Christensen, David M. Cottrell, Richard E. Baker

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Question Posted: May 23, 2014 11:26 AM

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Groft Company purchased Strobe Companys net assets and assigned them to four separate reporting units. Total goodwill

Question:

Reporting Unit Carrying value of investment Goodwill included in carrying value Fair value of net identifiable assets $700,000 $330,000 $380,000 $520,000 60,000 48,000 28,000 50,000 at year-end 600,000 300,000 400,000 500,000 Fair value of reporting unit at year-end 690,000 335,000 370,000 585,000

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Goodwill of 158000 60000 48000 0 50000 should be reported computed as ...View the full answer

Advanced Financial Accounting

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