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Hitman42 [59]
3 years ago
10

The impairment rule for goodwill involves how many steps?(a)1(b)2(c)3(d)4

Business
1 answer:
Kobotan [32]3 years ago
7 0

Answer: 2 steps

Explanation: While calculating impairment of goodwill following steps should be taken :-

1.In the first step the fair value of the goodwill is compared with its carrying value.

2. In the second step, if the fair value comes to be lower than the carrying value, then it is concluded that there is an impairment and then it is computed accordingly.

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Answer:

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Here in the given question, the maintenance cost is not considered to be a joint cost as this cost are associated with the paper napkins

Also, the pulping, screening, rolling, etc are considered to be joint cost

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