GOODWILL Problem #1: Determining Goodwill Slam Corp. purchased Dot.com Corp for $190,000 in an all cash deal. Book and fair value information for Dot.com are as follows: At Acquisition Book Fair Value...


Need some assistance in completing Problem 1 and Problem 2. Thank you


GOODWILL<br>Problem #1: Determining Goodwill<br>Slam Corp. purchased Dot.com Corp for $190,000 in an all cash deal. Book and fair<br>value information for Dot.com are as follows:<br>At Acquisition<br>Book<br>Fair<br>Value<br>Value<br>1/2/2011<br>1/2/2011<br>Assets<br>Current<br>Equipment<br>Patent<br>40,000<br>60,000<br>50,000<br>50,000<br>50,000<br>Goodwill<br>100,000<br>150,000<br>Liabilities<br>70,000<br>60,000<br>Equity<br>30,000<br>100,000<br>Required: Determine goodwill valuation on the acquisition date, if any.<br>Problem #2: Impairment of Goodwill<br>On 12/31/210, the fair value of Dot.com Corp.'s net assets was $150,000. Detailed book<br>value and fair value information is as follows:<br>Book<br>Fair<br>Value<br>Value<br>12/31/2021<br>12/31/2021<br>Assets<br>Current<br>Equipment<br>Patent<br>70,000<br>48,000<br>42,000<br>70,000<br>45,000<br>50,000<br>Goodwill<br>100,000<br>260,000<br>Liabilities<br>70,000<br>70,000<br>190,000<br>260,000<br>Equity<br>Required: Determine the impairment of goodwill for Dot.com Corp. as of 12/31/21, if<br>any.<br>

Extracted text: GOODWILL Problem #1: Determining Goodwill Slam Corp. purchased Dot.com Corp for $190,000 in an all cash deal. Book and fair value information for Dot.com are as follows: At Acquisition Book Fair Value Value 1/2/2011 1/2/2011 Assets Current Equipment Patent 40,000 60,000 50,000 50,000 50,000 Goodwill 100,000 150,000 Liabilities 70,000 60,000 Equity 30,000 100,000 Required: Determine goodwill valuation on the acquisition date, if any. Problem #2: Impairment of Goodwill On 12/31/210, the fair value of Dot.com Corp.'s net assets was $150,000. Detailed book value and fair value information is as follows: Book Fair Value Value 12/31/2021 12/31/2021 Assets Current Equipment Patent 70,000 48,000 42,000 70,000 45,000 50,000 Goodwill 100,000 260,000 Liabilities 70,000 70,000 190,000 260,000 Equity Required: Determine the impairment of goodwill for Dot.com Corp. as of 12/31/21, if any.

Jun 09, 2022
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