In performing impairment test for goodwill, the company had the following 20X6 and 20X7 information available. $\begin{array}{lrr}
& 20 \mathrm{X} 6 & 20 \mathrm{X} 7 \
\text { F air value of the reporting unit } & \$ 350,000 & \$ 400,000 \
\text { Net book value (including } \$ 50,000 \text { goodwill) } & \$ 360,000 & \$ 380,000
\end{array}$ Assume that the carry value of the identifiable assets are a reasonable approximation of their fair values. Based upon this information what are the 20X6 and 20X7 adjustment to goodwill, if any?

Question

In performing impairment test for goodwill, the company had the following 20X6 and 20X7 information available. $\begin{array}{lrr}
 & 20 \mathrm{X} 6 & 20 \mathrm{X} 7 \
\text { F air value of the reporting unit } & \$ 350,000 & \$ 400,000 \
\text { Net book value (including } \$ 50,000 \text { goodwill) } & \$ 360,000 & \$ 380,000
\end{array}$ Assume that the carry value of the identifiable assets are a reasonable approximation of their fair values. Based upon this information what are the 20X6 and 20X7 adjustment to goodwill, if any?

Quizplus · Accepted Answer

The Answer of In performing impairment test for goodwill, the company had the following 20X6 and 20X7 information available. $\begin{array}{lrr}
 & 20 \mathrm{X} 6 & 20 \mathrm{X} 7 \
\text { F air value of the reporting unit } & \$ 350,000 & \$ 400,000 \
\text { Net book value (including } \$ 50,000 \text { goodwill) } & \$ 360,000 & \$ 380,000
\end{array}$ Assume that the carry value of the identifiable assets are a reasonable approximation of their fair values. Based upon this information what are the 20X6 and 20X7 adjustment to goodwill, if any?

In Performing Impairment Test for Goodwill, the Company Had the Following