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    goodwill arising from a recent business combination

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    * Reporting Unit C is assigned $200,000 of goodwill arising from a recent business combination. The current carrying value of its net assets is $400,000 and the current fair value of its net assets, excluding goodwill, is $350,000. The fair value of the reporting unit is estimated to be $380,000. The amount of the impairment loss is:
    a. $150,000
    b. $170,000
    c. $180,000
    d. $200,000
    e. None of the above

    The next two questions refer to the following:
    Assume that P Company purchases 10 percent of S Company's common stock for $50,000 at the beginning of the year. During the year, S has net income of $25,000 and pays dividends of $10,000.

    * The entry recorded by P for the purchase of S' common stock includes which of the following:
    a. A debit to Cash for $50,000
    b. credit to Investment in S Company Common Stock for $50,000
    c. credit to Cash for $50,000
    d. debit to Cash for $10,000
    e. None of the above

    * The entry recorded by P for the receipt of dividend income from S Company includes which of the following:
    a. A credit to Cash for $1,000
    b. A debit to Cash for $10,000
    c. A debit to Dividend Income for $1,000
    d. debit to Cash for $1,000
    f. None of the above

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    https://brainmass.com/business/accounting/goodwill-arising-recent-business-combination-176725

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    * Reporting Unit C is assigned $200,000 of goodwill arising from a recent business combination. The current carrying value of its net assets is $400,000 and the current fair value of its net assets, excluding goodwill, is $350,000. The fair value of the reporting unit is estimated to be $380,000. The amount of the impairment loss is:
    a. $150,000
    b. $170,000
    c. $180,000
    d. $200,000
    e. None of the above

    Since the estimated fair value of the reporting unit is less than the current carrying value of ...

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