1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Veronika [31]
3 years ago
14

the fair value of Blossom is estimated to be $820,800. The carrying value of Blossom’s net identifiable assets, including the go

odwill, at year-end is $855,000. Prepare Cullumber’s journal entry, if necessary, to record impairment of goodwill.
Business
1 answer:
Greeley [361]3 years ago
4 0

Answer:

Cullumber Company

Journal Entry:

Debit Loss on Goodwill Impairment $34,200

Credit Goodwill $34,200

To record the loss on goodwill impairment.

Explanation:

a) Data and Calculation:

Fair value = $820,800

Carrying value of net identifiable assets, including goodwill = $855,000

Goodwill impairment = $34,200 ($855,000 - $820,800)

b) Cullumber, which acquired Blossom is expected to check for the impairment of goodwill yearly.  The impairment occurs when the carrying value of the net identifiable assets of Blossom is more than the fair value of Blossom.  Generally Accepted Accounting Standards require the annual review of the fair value of goodwill to check for its impairment.  By the above entry, the goodwill will be reduced by $34,200 and a loss debited in Cullumber's accounts.

You might be interested in
Q 11.5: A corporation purchases 4,000 shares of its own $5 par common stock for $8 per share, recording it at cost. What will be
BaLLatris [955]

Answer:

decrease of 32,000 dollars

Explanation:

the treasury sotck are recorded at cost:

4,000 shares x $8 per share = $32,000

the treasury stock is a contra.equity account that decreases the total stockholders' equity

As this shares are no longer outstading they are held by the firm thus, the capital fund of the firm are lower.

Also notice asset decrease as well because we use cash to acquire them.

7 0
3 years ago
2. If the interest rate on a savings account is 0.018%, approximately how much money do you need to keep in this account for 1 y
MA_775_DIABLO [31]

The interest from an investment is calculated through the equation,

    I = P x i

Where I is the interest, P is the principal amount and i is the interest rate.

   P = I / i

Substituting the known values,

   P = ($9.99) / (0.018/100) = $55,500

The answer to this item is therefore approximately $55,500. 

7 0
3 years ago
Explain the effect of a tariff on consumer surplus and producer surplus.
rosijanka [135]
The increase in the domestic price of both imported goods and the domestic substitutes reduces the amount of consumer surplus in the market. Tariff effects on the importing country's producers. ... The increase in the price of their product on the domestic market increases producer surplus in the industry.
7 0
3 years ago
Free cash flow (FCF) and net income (NI) differ in the following ways:
alexandr402 [8]

Answer:

c.  I, II, and III only

Explanation:

As we know that

Free cash flow = Earnings before Interest and Taxes ×  (1-Tax Rate) + Amortization and Depreciation expense - Change in Net Working Capital -Capital Expenditure

And, the Net income is determined after considering all cash and non cash expenses.

Therefore, I, II and III statements are considered

Hence, the option c is correct

6 0
2 years ago
If producing each additional unit of good x required giving up ever-increasing amounts of good y, the production possibilities c
Hatshy [7]

If producing each additional unit of good x required giving up ever-increasing amounts of good y, the production possibilities curve between x and y would be bowed outward.

The law of increasing possibility fee: As you increase the manufacturing of 1 appropriate, the opportunity fee to provide the additional precise will boom.

First, understand that opportunity price is the fee of the following-high-quality alternative when a decision is made; it's what's given up.

When the economy grows and all other matters continue to be steady, we are able to produce greater, so this will motivate a shift in the manufacturing opportunities to curve outward, or to the proper.

Learn more about production here: brainly.com/question/26460726

#SPJ1

5 0
9 months ago
Other questions:
  • ​You've just bought a new flat screen TV for ​$3 comma 000 and the store you bought it from offers to let you finance the entire
    12·1 answer
  • In a discount interest loan, you pay the interest payment up front. For example, if a 1-year loan is stated as $20,000 and the i
    5·1 answer
  • f a society decides to produce consumer goods from its available resources, it is answering the basic economic question,
    10·1 answer
  • What is psychology? ​
    6·2 answers
  • You are considering investing $1,000 in a complete portfolio. The complete portfolio is composed of treasury bills that pay 5% a
    10·1 answer
  • How much would $500 invested at 8% interest compounded continuously be worth after 3 years? round your answer to the nearest cen
    15·1 answer
  • Assume that you are running for president of a local sports club, for which there is another contender. Although you have admini
    9·1 answer
  • What is the APR on a loan with an effective annual rate of 15.26% and weekly compounding of interest?
    9·1 answer
  • Sheffield Corp. has the following transactions related to notes receivable during the last 2 months of 2020. The company does no
    7·1 answer
  • According to the U.S. Bureau of Labor Statistics, there were 100,800 chefs/head cooks employed in the United States in 2010 and
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!