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FrozenT [24]
2 years ago
9

Ajax is reviewing its previous 100% acquisition of Baxter to determine if there is goodwill impairment. At December 31, 2020 Aja

x has recorded Goodwill of $330,000 on its books relating to this acquisition. At December 31, 2020, Baxter had a book value of net assets of $400,000 (excluding goodwill) and an estimated fair value for the company of $600,000. What is the amount (if any) of the goodwill write-off required to be booked by Ajax at December 31, 2020 under the FASB rules effective in 2020.
Business
1 answer:
Sedaia [141]2 years ago
7 0

Answer:

Baxter

The amount of the Goodwill write-off required to be booked by Ajax at December 31, 2020 under the FASB rules effective in 2020 is:

= $130,000.

Explanation:

a) Data and Calculations:

Recorded Goodwill = $330,000

Book value of net assets = $400,000

Book value of all assets = $730,000 ($400,000 + $330,000)

Estimated fair value of company = $600,000

Goodwill impairment = $130,000 ($730,000 - $600,000)

b) The Goodwill impairment of $130,000 arose when the book value or the carrying amount exceeded the estimated fair value.

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Answer:

a. The first payment is received at the end of the first year, and interest is compounded annually.

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b. The first payment is received at the beginning of the first year, and interest is compounded annually.

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c. The first payment is received at the end of the first year, and interest is compounded quarterly.

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2 years ago
Carla has $10,000 that she would like to save for retirement.
coldgirl [10]

Answer:

higher, stocks, flunctuates, risk, bonds, interest

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Stocks belong to the owners of an organisation and as such, they are only entitled to interest after the interests of bond owners and preference stock holders have been settled. Meaning, despite the higher rates of interest offered, it is riskier to be a stock holder than a bond holder

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Answer:

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Explanation:

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