accounitng question help

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guys, pls help if you could............thanks alot! On may 31. 2011 A company paid $3500000 to acquire all of the common stock of B corporationame a division. of  A. Company B reported teh following balance  which became a division of A. B reported the following balancesheet at the time fo acquisition current assets 900,000 non current assets 27,00,000 total assets: 36,00,000 current liabilites 600,000 long term liabilities 500,000 stock holders equity 25,00,000 total: 36,00,000 it was determined at the date of the purchase that the fair value of the identifiable net assets of B was 28,00,000 at december 31, 2011 B reports the followitn balancesheet information current assets 800,000 non current assets(including goodwill recognized in purchase) 24,00,000 curretn liabilities (700,000) long term liabilities (500,000) net assets 2,000,000 it si detmined that the fair market value at 12/31/11 of the hall divison is $2100,000. the recorded amount for hall's net assets(excluding goodwill) is the same as fair value, except for property, plant and equipment, which as a fair value of 200,000 above teh carrying value. instruction: a) compute the amount fo goodwill recognized, if any, on may 31, 2011 b) determine the impairment loss, if any, to be reocorded on deceber 31, 2011 c) assume that the fair value of the hall division is 1900,000 instead of 21,00,000. prepare teh journal entry ro ercord the impairment loss, if any, on december 31 2011

pr_kathmandu · Apr 28, 2011 6:06 AM · 11,198 views

2 Replies

Can you show what did you do?

MAGorkhali · Apr 28, 2011 10:00 AM

I did not feel you your answer is good  ,enough for me to conform it was good. From my part, i did i very long time ago  and will take me a week to do and not sure I had the book with me . If you planning for cpa , need to know in depth.

MaGorkhali · Apr 28, 2011 8:54 PM

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