Question: On January 1 2010 Innovus Inc acquired 100 percent of

On January 1, 2010, Innovus, Inc., acquired 100 percent of the common stock of ChipTech Company for $670,000 in cash and other fair-value consideration. ChipTech’s fair value was allocated among its net assets as follows:

The December 31, 2011, trial balances for the parent and subsidiary follow:

a. Using Excel, compute consolidated balances for Innovus and ChipTech. Either use a worksheet approach or compute the balances directly.
b. Prepare a second spreadsheet that shows a 2011 impairment loss for the entire amount of goodwill from the ChipTechacquisition.
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  • CreatedOctober 04, 2014
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