On July 1, 2024, Vincent Company acquired Corey Company for $900,000 cash. At the time of purchase, Corey's balance sheet showed assets of $775,000 and liabilities of $250,000. The fair value of Corey's assets is estimated to be $950,000. Instructions (a) Compute the amount of goodwill acquired by Vincent. (b) On December 31, the fair value of Corey is estimated to be $720,000. The carrying value of Corey's net identifiable assets, including the goodwill, at year-end, is $750,000. 

Prepare Vincent's journal entry, if necessary, to record an impairment of goodwill

Answer rating: 100% (QA)

Account Titles Debit Credit Goodwill 30000 Loss on Impairme... View the full answer