Use the Internet to research two (2) publically traded U.S. companies, and download their financial statements. Assume you are the CEO of a major corporation. You are responsible for expanding the corporation through the acquisition of another company. Assume that the acquisition involved $15 million in goodwill. Provide an explanation for the business combination method you selected in expanding the corporation by acquiring another firm, your reason for selecting that business combination method, and how the purchase will grow the business. Identify at least five (5) possible synergies that could occur as a result of the proposed acquisition.
• Analyze the accounting requirements for the business combination method you selected. Prepare consolidated financial statements for the date of acquisition.
• Assume that, in year two (2) of operations, goodwill has been impaired. Explain to management how you determined goodwill was impaired and the financial impact of such impaired goodwill. Prepare the necessary accounting entries to recognize goodwill impairment.