2. In 2010, Alto, Inc., had acquired Rastiline Co. and recorded goodwill of $245 million as a result. The net assets (including goodwill) from Alto's acquisition of Rastiline Co. had a 2011 year-end book value of $580 million. Alto assessed the fair value of Rastiline at this date to be $700 million, while the fair value of all of Rastiline's identifiable tangible and intangible assets (excluding goodwill) was $550 million. The amount of the impairment loss that Alto would record for goodwill at the end of 2011 is |
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2. Option A... $95 millions
700 millions - (550+245)millions = loss of 95 millions
4. Option C....$27,333
Depreciation for 2009 and 2010 = 18000 *2 = $36000
Depreciable value as on 2011 = 200000 - 36000 = 164,000
Depreciation for 2011 = 164,000 / 6 years = $27,333
7. Option B.... $240,000
Depreciation for 2009 and 2010 under SLM
= 160,000 * 2 = $320,000
Depreciation for 2011 under sum of years digit method
=$480, 000*(3/6) = $240,000
9. Option B
As a prospective change from the current year through the remainder of its useful life.
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