Pearls Construction & Paving expanded its business by purchasing Alcott Maintenance, a division that provides road...

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Pearls Construction & Paving expanded its business by purchasing Alcott Maintenance, a division that provides road maintenance services. The division was purchased three years ago for $3,159.000 and has been identifed as a reporting unit. The net assets for the division including goodwill are as follows: Cash $252.000 Accounts Receivables 297,000 Inventory 780,000 Property, Plant & Equipment 974,000 Goodwill 1.235.000 (119 Jo0 ) Accounts Payable Unearned Revenue (75,000 ) Net assets, at carrying amounts $3,344,000 The fair value of the Alcott Maintenance Division reporting unit as a whole is estimated to be $3,071,000. Management determines that the unit's value in use is $3,170,000. Prepare any appropriate journal entries for goodwill impairment assuming that Pearl Construction & Paving is reporting under ASPE. f no entry is required, select "No Entry for the account titles and enter O for the amounts. Credit account titles are automatically Indented when amount is entered. De not indent manuolly) Account Titles and Explanation Debit Credit Prepare any appropriate journal entries for goodwill impairment assuming that Pearl Construction & Paving is reporting under IFRS. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit I. Pearls Construction & Paving expanded its business by purchasing Alcott Maintenance, a division that provides road maintenance services. The division was purchased three years ago for $3,159.000 and has been identifed as a reporting unit. The net assets for the division including goodwill are as follows: Cash $252.000 Accounts Receivables 297,000 Inventory 780,000 Property, Plant & Equipment 974,000 Goodwill 1.235.000 (119 Jo0 ) Accounts Payable Unearned Revenue (75,000 ) Net assets, at carrying amounts $3,344,000 The fair value of the Alcott Maintenance Division reporting unit as a whole is estimated to be $3,071,000. Management determines that the unit's value in use is $3,170,000. Prepare any appropriate journal entries for goodwill impairment assuming that Pearl Construction & Paving is reporting under ASPE. f no entry is required, select "No Entry for the account titles and enter O for the amounts. Credit account titles are automatically Indented when amount is entered. De not indent manuolly) Account Titles and Explanation Debit Credit Prepare any appropriate journal entries for goodwill impairment assuming that Pearl Construction & Paving is reporting under IFRS. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit I.

Answer rating: 100% (QA)

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