Following information pertains to Rafedia company at the end of 2020

Inventories	70,000
Property, plant, and equipment, net	500,000
Investments	360,000
Goodwill	100,000
Bonds	400,000
Net assets	630,000

Add information:

- Management has also received an offer to purchase the division for $600,000.

- All identifiable assets and liabilities’ book and fair value amounts are the same.

Instruction:

1. Prepare the journal entry to record the impairment at the end of 2020. 

2. Prepare the entry to amortize the goodwill at the end of the year if the goodwill be amortized for 5 years.

  Par Q1 part B: (5 points): A1, B1, D3:

At the beginning of 2019, the net book value of AL-JAMAL company assets was $500,000 which is less than the net fire market value of the assets by 10%. At that date the company received an offer from Waleed company to purchase the net assets by $450,000.

Instruction:

1. Calculate the goodwill 

2. Record the Goodwill if you have the following accounts at FMV: (2.5 Points) Account receivables 200,000 , Bonds 50,000 , Inventories 100,000 , and land 300,000