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30 November, 15:04

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?

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  1. 30 November, 17:48
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    fair value of the reporting unit = $310,000

    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
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