Professional Documents
Culture Documents
16,000
Cash/Accounts payable
16,000
3,200*
3,200
*(16,000/5 = 3,200)
c. Patents
47,200
Cash/Accounts payable
47,200
7,500
7,500
P 12-5
a. Goodwill = Purchase price the fair value of the identifiable assets at the
time of purchase
= 3,000,000 2,750,000 = $250,000
b. No impairment loss needs to be recorded. The carrying value of Conchita
Division $1,650,000 is lower than fair market value $1,850,000.
$300,000
$300,000