Advanced Accounting

| September 29, 2018

Albers Company acquires an 80% interest in BarkerCompany on January 1, 2011, for $850,000. The following determination and distribution ofexcess schedule is prepared at the time of purchase:Determination and Distribution of Excess ScheduleCompany Parent NCIImplied Fair Price ValueValue (80%) (20%)Fair value of subsidiary . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,062,500 $850,000 $212,500Less book value of interest acquired:Total equity. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 600,000 $600,000 $600,000Interest acquired . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80% 20%Book value. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . %u2026.. $480,000 $120,000Excess of fair value over book value . . . . . . . . . . . . . . . . .. $ 462,500 $370,000 $ 92,500Adjustment of identifiable accounts:Adjustment Amortization Worksheetper Year Life KeyBuildings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 200,000 $ 10,000 20 debit D1Goodwill. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 262,500 debit D2Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 462,500Albers uses the simple equity method for its investment in Barker. As of December 31,2015, Barker has earned $200,000 since it was purchased by Albers. Barker pays no dividendsduring 2011%u20132015.On December 31, 2015, the following values are available:Fair value of Barker%u2019s identifiable net assets (100%) . . . . . . . . . . . . . . . . . . . . . . . . . . $ 900,000Estimated fair value of Barker Company (net of liabilities) . . . . . . . . . . . . . . . . . . . . . 1,000,000Determine if goodwill is impaired. If not, explain your reasoning. If so, calculate the loss onimpairment.

Get a 30 % discount on an order above $ 100
Use the following coupon code:
RESEARCH
Order your essay today and save 30% with the discount code: RESEARCHOrder Now
Positive SSL