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Unformatted text preview: 2) Assume the same facts as above, except that the fair value of Oxford (the reporting unit) is $225 million. Determine the amount, if any, of the goodwill impairment loss that Dooling must recognize on these assets. Problem 3: In 2009, Quasar LTD. acquired all of the common stock of Penlight Laser for $124 million. The fair value of Penlight's identifiable tangible and intangible assets totaled $205 million, and the fair value of liabilities assumed by Quasar was $95 million. Quasar performed the required goodwill impairment test at the end of its fiscal year ended December 31, 2011. Management has provided the following information: Required: 1) Determine the amount of goodwill that resulted from the Penlight acquisition. 2) Determine the amount of goodwill impairment loss that Quasar should recognize at the end of 2011, if any. 3) If an impairment loss is required, prepare the journal entry to record the loss....
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This note was uploaded on 02/22/2012 for the course ACCT 401 taught by Professor Winchel during the Spring '10 term at South Carolina.
- Spring '10