In 2013,Azimuth Company Purchased a Small Business for $500,000 $$\begin{array} { | l | r | r | } \hline \text { Loss on goodwill } & 30,000 & \\\hline \text { Goodwill } & & 30,000 \\\hline\end{array}$$

question 127

Essay

In 2013,Azimuth Company purchased a small business for $500,000.The market value of the business's assets were $850,000,and the market value of the liabilities were $400,000.Azimuth recorded goodwill of $50,000 at time of acquisition.At the end of 2014,they measured the goodwill and found it had a remaining value of only $20,000.Please provide the entry needed at year-end 2014.
$$\begin{array} { | l | r | r | } \hline \text { Loss on goodwill } & 30,000 & \\\hline \text { Goodwill } & & 30,000 \\\hline\end{array}$$

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Definitions:

Decision-Maker

A person or entity authorized to make decisions, often within an organizational or judicial context.

Financial Loss

The monetary value reduction in an asset or the occurrence of expenses outweighing revenues.

Lawyer's Misconduct

Unethical or illegal actions by a lawyer during their professional practice, which may lead to disciplinary actions.

Limitation Periods

Time frames established by law within which lawsuits must be filed, after which claims are no longer valid.