Question

The fair value of net identifiable assets of a reporting unit exclusive of goodwill of Y Company is $270,000. The carrying value of the reporting unit's net assets on Y Company's books is $320,000, including $50,000 goodwill. If the reported goodwill impairment for the unit is $10,000, what would be the fair value of the reporting unit?

Answer 1

fair value of the reporting unit = $310,000

Step-by-step explanation:

given data

goodwill = $270,000

net assets = $320,000

goodwill impairment = $10,000

to find out

fair value of the reporting unit

solution

we will get here that fair value of the reporting unit is

fair value = net assets - goodwill impairment ..........................1

put her value we get fair value of the reporting unit

fair value of the reporting unit = $320,000 - $10,000

fair value of the reporting unit = $310,000