Bruceton Farms Equipment Company had goodwill valued at $80 million on its balance sheet at year-end. A review of the goodwill by the company's CFO indicated that the goodwill was impaired and was now only worth $50 million. What is the financial statement effect of the goodwill impairment? (Enter the amount of the change, using negative numbers when appropriate.) Assets change by $4 * million Liabilities change by $ x million Equity changes by $ x million Net income changes by $ * million
Bruceton Farms Equipment Company had goodwill valued at $80 million on its balance sheet at year-end. A review of the goodwill by the company's CFO indicated that the goodwill was impaired and was now only worth $50 million. What is the financial statement effect of the goodwill impairment? (Enter the amount of the change, using negative numbers when appropriate.) Assets change by $4 * million Liabilities change by $ x million Equity changes by $ x million Net income changes by $ * million
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:**Goodwill Impairment**
Bruceton Farms Equipment Company had goodwill valued at $80 million on its balance sheet at year-end. A review of the goodwill by the company’s CFO indicated that the goodwill was impaired and was now only worth $50 million.
What is the financial statement effect of the goodwill impairment? (Enter the amount of the change, using negative numbers when appropriate.)
| **Assets change by** | $ | ✘ million |
|--------------------------|----|------------|
| **Liabilities change by** | $ | ✘ million |
| **Equity changes by** | $ | ✘ million |
| **Net income changes by** | $ | ✘ million |
The user is prompted to enter the appropriate figures to reflect changes due to the goodwill impairment. The "Check" button presumably allows users to verify their input.
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