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Nataliya [291]
2 years ago
12

Parsons Company acquired 90% of Roxy Company several years ago and recorded goodwill of $200,000 at that date. During 2015 an an

alysis of the fair value of Roxy's assets determined an impairment of goodwill in the amount of $50,000. At what amount would consolidated goodwill be reported for 2015? 
a. $50,000.
b. $0.
c. $200,000.
d. $150,000.
e. $135,000.
Business
1 answer:
Crank2 years ago
6 0

Answer:

d. $150,000.

Explanation:

The computation of the consolidated goodwill reported is shown below:

= Recorded amount of goodwill - impairment amount of goodwill

= $200,000 - $50,000

= $150,000

By deducting the impairment of goodwill from the recorded amount of goodwill we can get the consolidated goodwill that is to be reported.

The 90% acquired percentage is ignored

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