Refer to the preceding problem, number 3. Suppose a year passes, and Cloud and Tron generate individual

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Refer to the preceding problem, number 3. Suppose a year passes, and Cloud and Tron generate individual net incomes of $105 million and $35 million, respectively. The latter is after a deduction by Tron of $12 million of straight-line depreciation. Compute the consolidated net income if 

(1) Goodwill is not impaired and 

(2) Half of the goodwill is written off at the end of the year. Ignore income taxes.

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...
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Introduction to Management Accounting

ISBN: 978-0133058789

16th edition

Authors: Charles Horngren, Gary Sundem, Jeff Schatzberg, Dave Burgsta

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