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
Advocard [28]
3 years ago
11

Jones Company bought Wood Company in 2020 and appropriately recorded $750,000 of goodwill related to the purchase. On December 3

1, 2021, the fair value of Wood Company is $6,000,000 and it is carried on Jones' books for a total of $5,100,000, including the goodwill. What goodwill impairment should be recognized by Jones in 2021?
Business
1 answer:
Alex3 years ago
7 0

Answer: $0

Explanation:

Wood company's value is carried in Jones company books as $5,100,000 which is less than the fair value of $6,000,000. There is therefore no goodwill because the fair value is larger than the carrying value and goodwill only exists if the reverse is the case.

If there is no goodwill, there can be no goodwill impairment so goodwill impairment recognized in 2021 is $0.

You might be interested in
An auditor assesses the risk of material misstatement because it
Maksim231197 [3]
<span>Choice (d) is the most correct. When an auditor looks at the risks involved with possible misstatements (control risk and inherent risk), it helps him or her understand the detection risk that could stem from using the wrong procedures or making the wrong decisions during the audit.</span>
3 0
3 years ago
Work Survival skills include?
finlep [7]

Answer:d

Explanation: because it is in the work place survival skills manual

hope this helps

7 0
3 years ago
A recent survey found that 60% of all adults over 50 wear sunglasses for driving. in a random sample of 20 adults over 50, what
laila [671]
Mean: 13.8 standard deviation:2.06833266
6 0
4 years ago
How do patents encourage technological progress
Setler79 [48]
Patents are used to balance the right of the individual with the concept of the public good. In general, the purpose of a patent is two-fold: to allow the inventor of some new thing to retain exclusive rights as to its use for a limited period of time, and after that time to ensure that the details of the invention are available for public use. 
By granting the patent-holder exclusive rights to their invention, use and duplication of the invention is at the sole discretion of the inventor, potentially allowing them to profit from it. However, after a period of time those exclusive rights cease to apply, and the new invention becomes available to the public. This contributes to the public good by increasing the amount of general knowledge available.
7 0
3 years ago
What is exchange rates?
Zinaida [17]
The rate at which the currancy of other countries are brought
3 0
4 years ago
Other questions:
  • There are three firms in an economy: X, Y, and Z. Firm X buys $200 worth of goods from firm Y and $300 worth goods from firm Z;
    15·1 answer
  • What is the minimum percentage of signed authorization cards needed by louis, a union organizer, before the national labor relat
    5·1 answer
  • Of the following, which does NOT represent an example of a traditional workplace document?
    12·1 answer
  • __________ is greater when the item is a luxury good rather than a necessity, when many substitutes are available, or when the p
    8·1 answer
  • Describe the "economic perspective" (or "economic way of thinking"), including definitions of scarcity, opportunity cost, purpos
    9·1 answer
  • A company uses proprietary computer software to offer services that other companies have not been able to emulate. These service
    12·1 answer
  • Compensating balances
    10·1 answer
  • Elton mayo conducted the studies known as the hawthorne studies and become known as the father of scientific management.
    7·1 answer
  • The Porter Beverage Factory owns a building for its operations. Porter uses only half of the building and is considering two opt
    10·1 answer
  • a business must not only look at its direct competitors, but also must contend with those firms that offer a product that a cons
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!