375,000 610,00 250.000 Retained ernngs Arcounts payahle 900.000 Deventory Receivahles 41.000 (Tatal as 0002 n nbe tS An sppraisal indicatel that the fair valr of the inventory wa S355,000 and the fair valur of the plant sets was $1,350,000. The agreed purchase price wan $2.100,000, and this amount was paid in canh to the previous ower of Colden Conpany Required: Prepare the entry to record the purchase of Golden Company D. Assume that te carrying amount of Golden Company division's net assets, including goodwit is $2,700,000. The recoverable amount of the division is estimated to be 5 2,600,000. Prepare the journal entry to record the impairment loss (If any) on December 31, 2019.
375,000 610,00 250.000 Retained ernngs Arcounts payahle 900.000 Deventory Receivahles 41.000 (Tatal as 0002 n nbe tS An sppraisal indicatel that the fair valr of the inventory wa S355,000 and the fair valur of the plant sets was $1,350,000. The agreed purchase price wan $2.100,000, and this amount was paid in canh to the previous ower of Colden Conpany Required: Prepare the entry to record the purchase of Golden Company D. Assume that te carrying amount of Golden Company division's net assets, including goodwit is $2,700,000. The recoverable amount of the division is estimated to be 5 2,600,000. Prepare the journal entry to record the impairment loss (If any) on December 31, 2019.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter13: Investments And Long-term Receivables
Section: Chapter Questions
Problem 8MC
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