Entries to record restructuring of debt. Rose Corporation was unable to service its outstanding debts. The company is considered to be experiencing significant financial difficulties. In an attempt to avoid filing for bankruptcy, it took the following measures:
a. Patents with book value of $140,000 and accumulated amortization of $115,000 were sold for $20,000.
b. Goodwill with a book value of $150,000 resulted from the acquisition of a small manufacturing firm in Indiana. The goodwill was tested for impairment, and it was concluded that $100,000 of the goodwill was impaired.
Already registered? Login
Not Account? Sign up
Enter your email address to reset your password
Back to Login? Click here