exercise 11 impairment loss

Project Description:

exercise 11 (lo 7) impairment loss. albers company acquires an 80% interest in barker
company on january 1, 2011, for $850,000. the following determination and distribution of
excess schedule is prepared at the time of purchase:
determination and distribution of excess schedule
company parent nci
implied fair price value
value (80%) (20%)
fair value of subsidiary1,062,500 $850,000 $212,500
less book value of interest acquired:
total equity $ 600,000 $600,000 $600,000
interest acquired 80% 20%
book value. . . . . $480,000 $120,000
excess of fair value over book value: $ 462,500 $370,000 $ 92,500
adjustment of identifiable accounts: adjustment amortization worksheet
per year life key
buildings . . . 200,000 $ 10,000 20 debit d1
goodwill. . . . . . . . . .262,500 debit d2
total . . . . . . . . . .$ 462,500
albers uses the simple equity method for its investment in barker. as of december 31,
2015, barker has earned $200,000 since it was purchased by albers. barker pays no dividends
during 2011–2015.
on december 31, 2015, the following values are available:
fair value of barker’s identifiable net assets (100%) . . . . . . . . . . . . . . . . . $ 900,000
estimated fair value of barker company (net of liabilities) . . . . . . . . . . . . . . .1,000,000
determine if goodwill is impaired. if not, explain your reasoning. if so, calculate the loss on
impairment.
Skills Required:
Project Stats:

Price Type: Negotiable

Expired
Total Proposals: 7
1 Current viewersl
44 Total views
Project posted by:

Proposals

Proposals Reputation Price offered
  • 4.8
    546 Jobs 386 Reviews
    $0 in 0 Day
  • 4.8
    405 Jobs 247 Reviews
    $0 in 0 Day
  • 3.8
    30 Jobs 19 Reviews
    $0 in 0 Day
  • 3.0
    5 Jobs 2 Reviews
    $0 in 0 Day
  • 4.4
    86 Jobs 65 Reviews
    $0 in 0 Day
  • 4.1
    70 Jobs 30 Reviews
    $25 in 0 Day