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Unformatted text preview: Copyright 23,100 Goodwill 170,000 Total Intangibles 203,100 Valuation of Copyright 24,000/40 = 600/1.5 = 900 24,000-900 = 23,100 C) Loss on Impairment 87,000 Goodwill (170,000-(420,000-330,000)) 80,000 Trade Name (10,000-3,000) 7,000 The reason Goodwill is considered impaired is because the value of the business was only $420,000 with a carrying value of $500,000. Copyright is not impaired because the expected future cash flow is $30,000 and that exceeds the current carrying amount of $24,000. Sheet1 Page 2...
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This note was uploaded on 01/13/2011 for the course ACT Ac 551 taught by Professor George during the Spring '10 term at DeVry Chicago.
- Spring '10
- Balance Sheet