On December 31, Star Corp had a reporting unit that had a book value of $ 950,000, including goodwill of $ 130,000 As part of the companys annual review of goodwill impairment, Star determined that the fair value of the reporting unit was $ 890,000 Star assigned $ 840,000 of the reporting units fai...

Choice c is correct Under USGAAP step 1 of goodwill te ...

On December 31, Star Corp. had a reporting unit that had a book value of $ 950,000,

Question:

On December 31, Star Corp. had a reporting unit that had a book value of $ 950,000, including of $ 130,000. As part of the company’s annual review of impairment, Star determined that the fair value of the reporting unit was $ 890,000. Star assigned $ 840,000 of the reporting unit’s fair value to its assets and liabilities other than . What is the impairment loss to be reported on December 31 under U. S. GAAP?
a. $ 50,000
b. $ 60,000
c. $ 80,000
d. $ 110,000
Goodwill
Goodwill is an important concept and terminology in accounting which means good reputation. The word goodwill is used at various places in accounting but it is recognized only at the time of a business combination. There are generally two types of...