Groft Company purchased Strobe Companys net assets and assigned them to four separate reporting units. Total goodwill
Question:
![Groft Company purchased Strobe Companys net assets and assigned them](https://dsd5zvtm8ll6.cloudfront.net/si.question.images/image/images6/297-B-A-G-F-A(2015).png)
Required
Determine the amount of goodwill that Groft should report at year-end. Show how you computedit.
Transcribed Image Text:
Reporting Unit Carrying value of investment Goodwill included in carrying value Fair value of net identifiable assets $700,000 $330,000 $380,000 $520,000 60,000 48,000 28,000 50,000 at year-end 600,000 300,000 400,000 500,000 Fair value of reporting unit at year-end 690,000 335,000 370,000 585,000
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 50% (6 reviews)
Goodwill of 158000 60000 48000 0 50000 should be reported computed as ...View the full answer
Answered By
Rohail Amjad
Experienced Finance Guru have a full grip on various sectors, i.e Media, Insurance, Automobile, Rice and other Financial Services.
Have also served in Business Development Department as a Data Anlayst
4.70+
32+ Reviews
83+ Question Solved
Related Book For
Advanced Financial Accounting
ISBN: 978-0078025624
10th edition
Authors: Theodore E. Christensen, David M. Cottrell, Richard E. Baker
Question Posted:
Students also viewed these Accounting questions
-
Peters Company purchased Stevens Company's net assets and assigned them to three separate reporting units. The data associated with each reporting unit is listed below. Reporting Unit A B C Carrying...
-
Mesa Corporation purchased Kwick Companys net assets and assigned goodwill of $80,000 to Reporting Division K. The following assets and liabilities are assigned to Reporting Division K: Required...
-
Company S has 4,000 shares outstanding and a total stockholders equity of $200,000. It is about to issue 6,000 new shares to the prospective parent company. The shares will be sold for a total of...
-
Canton Company makes two types of cell phones. Handy is a thin, pocket-size cell phone that is easy to carry around. Action is a palm-size phone convenient to hold while the user is talking. During...
-
Describe the dynamics that move a monopolistically competitive firm from short-run monopolist to long-run competitor.
-
What is the purpose of a C++ constructor?
-
They were inspected again for rough grain and any knots that could cause quality problems. Any rejects were then cut into shorter usable lengths for shorter handrails or spindles? LO.1
-
A mixture of 54.5 mol% benzene in chlorobenzene at its bubble point is fed continuously to the bottom plate of a column containing two theoretical plates. The column is equipped with a partial...
-
An acquirer has a book value for its current assets of $25,000 and market value of current assets of $200,000. The target has a book value for its current assets of $3,500 and market value of current...
-
Erica and Bob participate in a friendly Hackathon that allows each to solve one question a day out of the three offered. There will be one easy, one medium and one hard question, with points awarded...
-
Double Corporation acquired all of the common stock of Simple Company for $450,000 on January 1, 20X4. On that date, Simples identifiable net assets had a fair value of $390,000. The assets acquired...
-
Washer Company has a reporting unit resulting from an earlier business combination. The reporting units current assets and liabilities are Required Determine the amount of goodwill to be reported and...
-
What is the meaning and significance of the term capital cost of an asset?
-
5. Group the majors and construct a relative frequency distribution with a circle graph with this information. Program of Study bus AA Bus Eng AS Nur mech AA Nur AA AS Nur AS Nur AA DE AS AA AS AA AA...
-
1 2 Let f (x) = and g(x) = +4. x-3 a. Find and simplify (go f) (x). (gf) (x) = b. Find the restriction for the domain of (go f) (x) Domain restriction: x + each value using comma.) (If there's more...
-
The Casings Plant of Wyoming Machines makes plastics shells for the company's calculators. (Each calculator requires one shell.) For each of the next two years, Wyoming expects to sell 660,000...
-
(f) A windowless office is to be illuminated for 15 hours per day, for 6 days per week, for 50 weeks per year. The floor is 20 m long and 12 m wide. An overall illumination of 450 Lux is to be...
-
Give the series of basic transformation matrices that transform the wedge below so that it can sit "on top of" the following parallelepiped to form a simple "house" with the ridge line of the roof...
-
Buying Stock with Commissions Your discount brokerage firm charges $8.95 per stock trade. How much money do you need to buy 200 shares of Pfizer, Inc. (PFE), which trades at $27.22? (LG4)
-
Refer to the Conservation Ecology (Dec. 2003) study of the causes of forest fragmentation, presented in Exercise 2.166 (p. 97). Recall that the researchers used advanced high-resolution satellite...
-
Covered interest rate arbitrage. As a trader for the London-based money market Commonwealth Fund, you see the following quotes: a. From Barclays Bank, one-year sterling deposits/loans at 6. 0 percent...
-
On January 1, 20X5, Pond Corporation purchased 75 percent of Skate Companys stock at underlying book value. At that date, the fair value of the noncontrolling interest was equal to 25 percent of...
-
The trial balance data presented in P824 can be converted to reflect use of the cost method by inserting the following amounts in place of those presented for Bennett Corporation: Investment in Stone...
-
Why are subsidiary preferred dividends that are paid to nonaffiliates normally deducted from earnings in arriving at consolidated net income? When is it not appropriate to deduct subsidiary preferred...
-
How to solve general ledger cash balance chapter 9 assignment 5
-
On 31 July 2018, Sipho bought 1 000 ordinary shares in ABC Ltd at a cost of R2 750. On 31 December 2018 the company made a 1 for 10 bonus issue. On 31 March 2019, Sipho sold 300 shares for R800. What...
-
If you purchase a $1000 par value bond for $1065 that has a 6 3/8% coupon rate and 15 years until maturity, what will be your annual return? 5.5% 5.9% 5.7% 6.1%
![Mobile App Logo](https://dsd5zvtm8ll6.cloudfront.net/includes/images/mobile/finalLogo.png)
Study smarter with the SolutionInn App