On January 1,2017,Apex Solutions Paid $200,000 to Acquire Fancy Phones

question 40

Essay

On January 1,2017,Apex Solutions paid $200,000 to acquire Fancy Phones Company,an electronic gadget-advertising website.At the time of the acquisition,Fancy Phones' balance sheet reported total assets of $200,000 and liabilities of $100,000.The fair market value of Fancy Phones' assets was $200,000.The fair market value of its liabilities was $100,000.At the end of 2020,goodwill was measured,and its fair value was determined to be $60,000.Record the impairment of goodwill.Omit explanation.

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Definitions:

Globalization

The process of interaction and integration among people, companies, and governments worldwide, often resulting in an interconnected global economy.

Supply Chain

A system of organizations, people, activities, information, and resources involved in moving a product or service from supplier to customer.

Supply Chain Network

A supply chain network is the connected series of individuals, organizations, resources, activities, and technology involved in the manufacture and sale of a product or service, from raw material to the final customer.

Distribution Centers

Facilities that store products and goods before they are distributed to retailers, wholesalers, or directly to consumers, playing a crucial role in the supply chain.