Information has been collected regarding Pindea Company's cash-generating unit that includes goodwill. At December 31, 2021, the assets of the Pindea Company's cash-generating unit are shown as follows on the company's statement of financial position: Goodwill Building Cost Equipment 126,500 Patent rights $ 25,000 505,000 30,000 $ 686,500 Accumulated Depreciation 30,850 200,150 18,500 $ 249,500 Net Book Value $ 25,000 95,650 304,850 11,500 $ 437,000 An impairment test indicates that the fair value of Pineda Company's cash- generating unit's assets is $350,000. The assets are not separable - they must be operated or sold together as a group. Required: Indicate the net book value of each asset after the write-down and prepare an adjusting journal entry to record the impairment.

Information has been collected regarding Pindea Company's cash-generating unit that includes goodwill. At December 31, 2021, the assets of the Pindea Company's cash-generating unit are shown as follows on the company's statement of financial position: Goodwill Building Cost Equipment 126,500 Patent rights $ 25,000 505,000 30,000 $ 686,500 Accumulated Depreciation 30,850 200,150 18,500 $ 249,500 Net Book Value $ 25,000 95,650 304,850 11,500 $ 437,000 An impairment test indicates that the fair value of Pineda Company's cash- generating unit's assets is $350,000. The assets are not separable - they must be operated or sold together as a group. Required: Indicate the net book value of each asset after the write-down and prepare an adjusting journal entry to record the impairment.

Excel Applications for Accounting Principles

4th Edition

ISBN:9781111581565

Author:Gaylord N. Smith

Publisher:Gaylord N. Smith

ChapterMB: Model-building Problems

Section: Chapter Questions

Problem 14M

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