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Posted: July 27th, 2022
recognition og intengible fixed assets
Question description
Waters Corporation purchased Johnson Company 3 years ago and at that time
recorded goodwill of 400,000. The Johnson Division’s net assets, including the
goodwill, have a carrying amount of $800,000. The fair value of the division is
estimated to be 1,000,000. Prepare Waters’ journal entry, if necessary, to record
impairment of the goodwill
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