Question: Tri State Co acquired the assets of Riley Co for 1 200 000

Tri-State Co. acquired the assets of Riley Co. for $1,200,000 in 2013. The estimated fair market value of the assets at the acquisition date was $1,000,000. Goodwill of $200,000 was recorded at acquisition. In 2014, because of negative publicity, one-half of the goodwill acquired from Riley Co. was judged to be permanently impaired.

a. How will Tri-State account for the impairment of the goodwill?
b. Prepare the journal entry to record the permanent impairment of goodwill.

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  • CreatedOctober 26, 2013
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