|
|
Ans: Journal Entry:
Date | Account title and explanation | Debit($) | Credit($) |
Loss On Impairment- Goodwill | 260,000 | ||
Accumulated Impairment Goodwill | 260,000 | ||
( to record goodwill impairment) |
loss on impairment= 3,275,000-3,015,000
=> 260,000
If the market value is lower than the carrying value, then impairment test will determining the cause of this difference
And the Entry Will be done by debiting Loss on impairment, If the market Value is more than carrying Value,Then no goodwill Impairment is Necessary. and here market value is 3,015,000 lesser than carrying Value i.e. 3,275,000
Get Answers For Free
Most questions answered within 1 hours.