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EXERCISE 12-15
(a) December 31, 2010
Loss on Impairment.............................. 15,000,000
Goodwill......................................... 15,000,000
The fair value of the reporting unit ($335 million) is below its
carrying value ($350 million). Therefore, an impairment has
occurred. To determine the impair-ment amount, we first find the
implied goodwill. We then compare this implied fair value to the
carrying value of the goodwill to determine the amount of the
impairment to record.
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ACCT 551 Week 1 Homework E12-5, E12-16
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E12-5 (Correct Intangible Assets Account) As the recently
appointed auditor for William J. Bryan Corporation, you have been