Waters Corporation purchased Johnson Company 3 years ago and at that time record

Question

Waters Corporation purchased Johnson Company 3 years ago and at that time recorded goodwill of $386,660. The Johnson Division’s net assets, including the goodwill, have a carrying amount of $814,270. The fair value of the division is estimated to be $1,198,100. Prepare Waters’ journal entry to record impairment of the goodwill. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Account Titles and Explanation Debit Credit

Explanation / Answer

No entry is there for impairment of Goodwill because Fair value is $1,198,100 which is more than net assets of $814,270

Related Questions

Navigate

• Browse (All)
• Browse W
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.