Par Corporation recorded goodwill in the amount of $100,000 in its acquisition of Sel Company in 2011.

Question:

Par recorded in the amount of $100,000 in its acquisition of Sel Company in 2011. Par paid a total of $350,000 to acquire Sel. In preparing its 2012 financial statements, Par estimates that identifiable net assets still have a fair value of $250,000, but the total fair value of Sel is now $320,000. Calculate the implied value of at December 31, 2012, and indicate how the change in value (if any) will affect Par’s 2012 income statement.

Goodwill
Goodwill is an important concept and terminology in accounting which means good reputation. The word goodwill is used at various places in accounting but it is recognized only at the time of a business combination. There are generally two types of... Corporation
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