During 2009, Lexie, Inc

question 30

Essay

During 2009, Lexie, Inc. acquired Lena, Inc. for $10,000,000. The fair market value of the net assets of Lena, Inc. was $8,500,000 on the date of purchase. During 2012, Lexie, Inc. determined the goodwill resulting from the Lena acquisition was impaired and had a value of $1,000,000.
(a) Determine the amount of goodwill implied during 2009.
(b) IIIustrate the effects on the accounts and the finencial statements of the December 31,2012, adjustment for the goodwill impairment.

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Definitions:

Rhetorical Situation

The context of a rhetorical act, made up of a rhetor, an audience, a message, and the purpose for communication.

Specific Author

An individual writer or creator who is identified by name.

Evaluating

The process of assessing or appraising the value, significance, or efficacy of something based on set criteria or standards.