Exercise 11-23

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

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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)
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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...
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## 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.

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