General Products Company purchased the Special Products Division in 2014 and appropriately recorded $750,000 of goodwill related
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General Products Company purchased the Special Products Division in 2014 and appropriately recorded $750,000 of goodwill related to the purchase. As of December 31, 2015, the fair value of the Special Products Division is $6,000,000 and is recorded in the General Products books for a total of $5,100,000, including goodwill. An analysis of the assets of the Special Products Division indicates that goodwill of $600,000 exists as of December 31, 2015.
What goodwill impairment must General Products recognize in 2015?
Related Book For
Financial Reporting and Analysis
ISBN: 978-0078025679
6th edition
Authors: Flawrence Revsine, Daniel Collins, Bruce, Mittelstaedt, Leon
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