Bramble Corporation purchased Johnson Company 3 years ago and at that time recor

Question

Bramble Corporation purchased Johnson Company 3 years ago and at that time recorded goodwill of $420,000. The Johnson Division’s net assets, including the goodwill, have a carrying amount of $840,000. The fair value of the division is estimated to be $1,010,000.

Prepare Bramble journal entry to record impairment of the goodwill. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Account Titles and Explanation

Debit

Credit

Account Titles and Explanation

Debit

Credit

Explanation / Answer

As the fair value of the division exceeds the carrying amount of the net assets, goodwill is not considered to be impaired. No Entry 0 No Entry 0

Related Questions

Navigate

• Browse (All)
• Browse B
• Subjects

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