The fair value of the division is estimated to be 646000


Question - Monty Corporation purchased Johnson Company 3 years ago and at that time recorded goodwill of $350,000. The Johnson Division's net assets, including the goodwill, have a carrying amount of $710,000. The fair value of the division is estimated to be $646,000 and the implied goodwill is $286,000.

Prepare Monty journal entry to record impairment of the goodwill.

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Accounting Basics: The fair value of the division is estimated to be 646000
Reference No:- TGS02539220

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