Question

Help Save & Exit Submit Check my work The fair values of assets and abilities held by three reporting units and other information related to the reporting units owned by Prover Company are as follows: Cash Receivables Inventory Land Bulldings Equipment Accounts Payable Fair value of Reporting Unit Carrying value of Investment Goodli Included in Carrying Value Reporting Unit $ 29,000 5 77,600 $ 19,600 58.860 98,00 19,200 19.00 29,900 10,300 103,000 82,400 144,200 92,700 61,300 412,000 273,000 132,700 525,100 298,00 72,100 41,200 51,500 10.30 Required: a. Determine the amount any, that Prover should report as a goodwill impairment for the current period b. Determine the amount of goodwill that Prover should report in its current financial statements. Complete this question by entering your answers in the tabs below. Required A Required B Determine the amount, if any, that Prover should report as a goodwill impairment for the current period Goodwill impairment Required >

Answer 1

Please refer the following image for the solution:

Goodwill Impairment: When carrying value is greater than fair value, potential goodwill impairment is applicable. Answer a Goodwill impairment Answer b Amt of Goodwill to report in its current Financial Statements $ 109,600 A B с Total Goodwill included in Carrying Value $ 72,100 $ 61,900 $ 41,200 Implied Goodwill at year end $ 45,600 $ 61,900 $ 2,100 Goodwill to be reported at year end $ 45,600 $ 61,900 $ 2,100 $ 109,600 Cash & Receivables Inventory Land Buildings Equipment Accounts Payable Net Assets Goodwill Total Less: Fairvalue Reduction(Increase) in Goodwill Goodwill in Books Reduction(Increase) in Goodwill Implied Goodwill Total A B с $ 29,000 $ 77,600 $ 19,600 $ 58,800 $ 98,000 $ 39,200 $ 19,600 $ 29,900 $ 10,300 $ 103,000 $ 154,500 $ 82,400 $ 144,200 $ 92,700 $ 51,500 $ -41,200 $ -61,800 $ -10,300 $ 313,400 $ 390,900 $ 192,700 $ 72,100 $ 61,900 $ 41,200 $385,500 $ 452,800 $ 233,900 $ 412,000 $452,800 $ 273,000 $ -26,500 $ $ -39,100 $ 72,100 $ 61,900 $ 41,200 $ -26,500 $ $ -39,100 $ 45,600 $ 61,900 $ 2,100 $ 109,600