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16 December, 19:10

Parsons Company acquired 90% of Roxy Company several years ago and recorded goodwill of $200,000 at that date. During 2015 an analysis of the fair value of Roxy's assets determined an impairment of goodwill in the amount of $50,000. At what amount would consolidated goodwill be reported for 2015? 

a. $50,000.

b. $0.

c. $200,000.

d. $150,000.

e. $135,000.

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Answers (1)
  1. 16 December, 22:51
    0
    d. $150,000.

    Explanation:

    The computation of the consolidated goodwill reported is shown below:

    = Recorded amount of goodwill - impairment amount of goodwill

    = $200,000 - $50,000

    = $150,000

    By deducting the impairment of goodwill from the recorded amount of goodwill we can get the consolidated goodwill that is to be reported.

    The 90% acquired percentage is ignored
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