ACC 304 All Assignments ACC 304 All Assignments | Page 7

Net income for the year ended 2015 87,000
Market price of stock, 12/31/14 10
Market price of stock, 12/31/15 12
Common stockholders' equity, 12/31/14 1,000,000
Common stockholders' equity, 12/31/15 1,200,000
Outstanding shares, 12/31/15 100,000
Preferred dividends for the year ended 2015 10,000
What is the payout ratio for Sealy Corporation for the year ended
2015?
22) Jenks Corporation acquired Linebrink Products on January 1, 2015
for $8,000,000, and recorded goodwill of $1,500,000 as a result of that
purchase. At December 31, 2015, Linebrink Products had a fair value of
$6,800,000. The net identifiable assets of the Linebrink (excluding
goodwill) had a fair value of $5,800,000 at that time. What amount of
loss on impairment of goodwill should Jenks record in 2015?