Exercise 11-23 - = $30 m. Implied Goodwill $58 m. Book...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Exercise 11-23 1) The amount of goodwill that resulted from the Harmon acquisition is = $58 million. Calculations: $420 m. Price Paid – ( $512 m. Total Assets - $150 m. Total Liabilities) = $58 m. 2) The impairment loss that Pesky should recognize is $28 million. Calculations: $400 m. FV of Harmon - $370 m. FV of Harmon’s Net Assets (excluding goodwill)
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: = $30 m. Implied Goodwill $58 m. Book Value of Goodwill - $30 Implied Goodwill = $28 m. 3) An impairment loss is required, and the journal entry to record the loss is: Loss on impairment of Goodwill $28, 000,000 Goodwill $28,000,000...
View Full Document

This note was uploaded on 01/06/2010 for the course ACCTG 321 taught by Professor Will during the Spring '08 term at San Diego State.

Ask a homework question - tutors are online