Freeman Co. acquired another business and paid (among other amounts) $64,800 for its goodwill in 2018. On December 31, 2020, the

Question

3 years ago

9

Freeman Co. acquired another business and paid (among other amounts) $64,800 for its goodwill in 2018. On December 31, 2020, the

net book value of the business is $792,000 and the fair value of the business is $765,000. Determine the amount of goodwill impairment (if any) on December 31, 2020. Assume no impairment losses were recognized on goodwill in prior periods.

Business

1 answer:

agasfer [191] · Answer 1 · 2022-11-25T05:59:56+03:00

agasfer [191]3 years ago

5 0

Answer: $27000

Explanation:

The amount of goodwill impairment on December 31, 2020 will be:

Amount if goodwill = Net book value - Fair value

= $792,000 - $765,000.

= $27000

Therefore, the amount of Goodwill is $27000