TMR Company is performing its annual impairment testing for its indefinite-lived assets including Goodwill for its...
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TMR Company is performing its annual impairment testing for its indefinite-lived assets including Goodwill for its reporting unit, Coughlin Co., in addition to a definite-lived asset impairment situation as detailed below: Net Book Value of Coughlin Co. (Before any Impairment Losses) including Goodwill Coughlin Co. was originally acquired as a business combination and Goodwill was capitalized during that transaction for the following amount: Fair Value of Coughlin Co. Assume there is a Qualitative case for Impairment to be calculated for Goodwill Historical Cost of Vehicle (Included in NBV Total) Accumulated Depreciation of Vehicle (Included in NBV Total) Total Future Cash Flows from Vehicle for its remaining 5 year useful life (Undiscounted) Present Value Interest Factor at rate of 6% for 5 Years Assume No Residual Value on the Vehicle $ $ $ $ $ $ 800,000 320,000 540,000 35,000 18,000 20,000 0.7473 Required What is the journal entry for the Impairment on the Vehicle if there is any? What is the balance in the Goodwill account after all necessary impairment journal entries are made? TMR Company is performing its annual impairment testing for its indefinite-lived assets including Goodwill for its reporting unit, Coughlin Co., in addition to a definite-lived asset impairment situation as detailed below: Net Book Value of Coughlin Co. (Before any Impairment Losses) including Goodwill Coughlin Co. was originally acquired as a business combination and Goodwill was capitalized during that transaction for the following amount: Fair Value of Coughlin Co. Assume there is a Qualitative case for Impairment to be calculated for Goodwill Historical Cost of Vehicle (Included in NBV Total) Accumulated Depreciation of Vehicle (Included in NBV Total) Total Future Cash Flows from Vehicle for its remaining 5 year useful life (Undiscounted) Present Value Interest Factor at rate of 6% for 5 Years Assume No Residual Value on the Vehicle $ $ $ $ $ $ 800,000 320,000 540,000 35,000 18,000 20,000 0.7473 Required What is the journal entry for the Impairment on the Vehicle if there is any? What is the balance in the Goodwill account after all necessary impairment journal entries are made?
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Related Book For
Intermediate Accounting
ISBN: 978-0132162302
1st edition
Authors: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
Posted Date:
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