Intermediate Accounting (16th Edition)

Published by Wiley
ISBN 10: 1118743202
ISBN 13: 978-1-11874-320-1

Chapter 6 - Accounting and the Time Value of Money - Review and Practice - Bridge to the Profession - Codification Exercises - Page 312: CE6-2

Answer

For impairment to take place, the fair value of goodwill (which is implied) must be lower than the carrying amount. The measurement of goodwill takes place as a residual; thus, there is no direct measuring (350-20-35-2).

Work Step by Step

For impairment to take place, the fair value of goodwill (which is implied) must be lower than the carrying amount. The measurement of goodwill takes place as a residual; thus, there is no direct measuring (350-20-35-2).
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