On January 1, 2020, Faye Company purchasedChe Company at a cost that resulted inrecognition of goodwill of 2,000,000. During thefirst quarter of 2020, Faye Company spent anadditional 800,000 on expenditures designed todevelop and maintain goodwill by training andhiring new employees. Due to theseexpenditures, on December 31, 2020, FayeCompany estimated that the benefit period ofgoodwill was indefinite. In the December 31,2020 how much is recorded as outrightexpense?1,800,000800,0002,000,0001,900,000

in case of bussiness combination if additional information recevied within a Measurment period…

Answered: how much is recorded as outright se?

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter12: Intangibles

Section: Chapter Questions

Problem 19E

See similar textbooks

Similar questions

On January 1, 2018, Paye Company purchased Che Company at a cost that resulted in recognition of goodwill of P2,000,000. During the first quarter of 2018 Paye Company spent an additional P 800 000 on expenditures designed to develop and maintain goodwill by training and hiring new employees. Due to these expenditures, on December 31, 2018, Paye Company Estimated the benefit period of goodwill was indefinite. On December 31, 2018, what amount should be reported as goodwill?
On January 1, 2020, Faye Company purchased Che Company at a cost that resulted in recognition of goodwill of 2,000,000. During the first quarter of 2020, Faye Company spent an additional 800,000 on expenditures designed to develop and maintain goodwill by training and hiring new employees. Due to these expenditures, on December 31, 2020, Faye Company estimated that the benefit period of goodwill was indefinite. In the December 31, 2020 statement of financial position, what amount should be reported as goodwill? 800,000 O 2,000,000 1,800,000 1,900,000
On January 2, 2019, Tweety Company purchased Sylvester Company at a cost that resulted in recognition of goodwill of P1,000,000, having an expected benefit period of 10 years. During the first quarter of 2019, Tweety spent an additional P400,000 on expenditures designed to maintain goodwill. expenditures, at December 31, 2019, Tweety estimated that the benefit period of goodwill was 20 years. Due to these In its December 31, 2019 statement of financial position, what amount should Tweety Company report as goodwill? Answer: 1,000,000 Give a solution to this answer.
On January 1, 2019, EXO Corp. purchased BTS Inc. at a cost that resulted in recognition of goodwill at P10,000,000 having an expected benefit period of 10 years. During the first half of 2019, EXO Corp. spent an additional P2,000,000 on expenditures designed to maintain goodwill. Due to these expenditures, on December 31, 2019, EXO Corp. estimated that the benefit period of goodwill was indefinite.In its December 31, 2019 statement of financial position, what amount should EXO Corp report as goodwill?
On January 1, 2020, X Company purchased Y Company at a cost that resulted In recognition of goodwill at 10 million having an expected benefit period of 10 years. During the first half of 2020, X Company spent an additional 2 million on expenditures designed to maintain goodwill. Due to these expenditures, on December 31, 2020, X Company estimated that the benefit period of goodwill was indefinite.In Its December 31, 2020 statement of financial position, what amount should X Company report as goodwill? A. 12,000,000 B. 10,000,000 C. 9,500,000 D. 9,000,000
On June 30, 2020, Happee Inc. purchased goodwill of P125,000 when it acquired the net assets of Beam Corp. During 2020, Happee incurred additional cost of developing the goodwill, by training Beam employees (P50,000) and hiring additional Beam employees (P25,000). How much should Happee report as goodwill on its December 31, 2020 Financial Position?
Manara Corporation acquired Sama Products on January 1, 2019 for $4,000,000, and recorded goodwill of $750,000 as a result of that purchase. At December 31, 2019, Sama Products had a carrying value of $3,500,000, Also, it is determined that the current recoverable amount value of the Sama division is $2,900,000 at that time. What amount of loss on impairment of goodwill should Manara record in 20197 OA S710,000 OB $600,000 OC S480,000 OD S0
In 2019, Alliant Corporation acquired Centerpoint Inc. for $300 million, of which $50 million was allocated to goodwill. At the end of 2021, management has provided the following information for a required goodwill impairment test: Fair value of Centerpoint Inc. $ 220 million Book value of Centerpoint’s net assets (excluding goodwill) 200 million Book value of Centerpoint’s net assets (including goodwill) 250 million 1. Determine the amount of the impairment loss. 2. Determine the amount of the impairment loss assuming that the fair value of Centerpoint is $270 million.
On June 1, 2021, Startlet Company approved a plan to dispose of a business segment. It is expected that the sale will occur on April 30, 2022. On December 31, 2021, the carrying value of net assets of the segment was P4,000,000 and the net recoverable amount was P3,600,000. During 2021, the company paid employees severance and relocation costs of P200,000 as a direct result of the discontinuing operation. The revenues and expenses of the discontinuing segment during 2021 were: Period covered Revenue January 1 to May 31 June 1 to December 31 P3,000,000 1,400,000 Expenses P4,000,000 1,800,000 Income tax rate is 35%. What amount should be reported as loss from discontinued operation for 2021? Your answer
On June 1, 2021, Startlet Company approved a plan to dispose of a business segment. It is expected that the sale will occur on April 30, 2022. On December 31, 2021, the carrying value of net assets of the segment was P4,000,000 and the net recoverable amount was P3,600,000. During 2021, the company paid employees severance and relocation costs of P200,000 as a direct result of the discontinuing operation. The revenues and expenses of the discontinuing segment during 2021 were: Period covered January 1 to May 31 June 1 to December 31 Revenue P3,000,000 1,400,000 Expenses P4,000,000 1,800,000 Income tax rate is 35%. What amount should be reported as loss from discontinued operation for 2021?
IIn 2018, Martin Corp. acquired Glynco and recorded goodwill of $100 million. Martin considers Glynco a separate reporting unit. By the end of 2021, the net assets (including goodwill) of Glynco are $320 million and its estimated fair value is $260 million. The amount of the impairment loss that Martin would record for goodwill at the end of 2021 is:
In 2019, Alliant Corporation acquired Centerpoint Inc. for $300 million, of which $50 million was allocated to goodwill. At the end of 2021, management has provided the following information for a required goodwill impairment test: Fair value of Centerpoint Inc.$220million Book value of Centerpoint’s net assets (excluding goodwill) 200million Book value of Centerpoint’s net assets (including goodwill) 250million Determine the amount of the impairment loss

SEE MORE QUESTIONS

Recommended textbooks for you

Intermediate Accounting: Reporting And Analysis

Accounting

ISBN:

9781337788281

Author:

James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:

Cengage Learning

Intermediate Accounting: Reporting And Analysis

Accounting

ISBN:

9781337788281

Author:

James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:

Cengage Learning

SEE MORE TEXTBOOKS