act 470 ct 2

Anonymous
timer Asked: Dec 18th, 2018
account_balance_wallet $35

Question description

Option #1: Goodwill Impairment Test

Assume that the equity method Equity Investment account relating to a subsidiary has a reported balance of $6,250,000, including a carrying value of goodwill of $619,000. You currently value that subsidiary at $5,625,000, and estimate that the fair value of the subsidiary’s net assets, other than goodwill, is $5,375,000.

Submission Requirements:

Attach a PowerPoint presentation indicating:

  • The steps required in assessing for goodwill impairment.
  • The determination if the above scenario indicates that goodwill is impaired (showing all work).
  • The required journal entries if indeed there is goodwill impairment.
  • Review the grading rubric following this assignment, to understand how you will be graded on this assignment. Reach out to your instructor if you have questions about the assignment.

Tutor Answer

Perfectsolutions
School: Purdue University

Find the attached completed work, If you have another one, please invite me to bid. Kindly give me a 5 star review to build my profile.

Goodwill Impairment Test
Name
Institution Affiliate

 1)
 I agree that a performance test should be performed for potential impairment.
 This test acts as a performance value and exceeds the fair value.
 Performance test will determine the speed, responsiveness and stability of the

company.
 There are very significant reasons why a perfor...

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Anonymous
10/10 would recommend. Responsive and helpful.

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