On 1 July 2016 Tim Ltd acquired all the share capital of Tam Ltd and goodwill...

On 1 July 2016 Tim Ltd acquired all the share capital of Tam Ltd and goodwill on acquisition amounted to $110,000. The management of Tim Ltd impaired the goodwill by $20,000 in the year ended 30 June 2018. An additional impairment of $30,000 was recorded in the year ended 30 June 2019. The consolidation adjustment to record the goodwill impairment on 30 June 2019 is:

		Dr Retained earnings $20,000; Dr Impairment loss $30,000; Cr Accumulated impairment $50,000
		Dr Impairment loss $50,000; Cr Accumulated impairment $50,000
		Dr Impairment loss $20,000; Cr Accumulated impairment $20,000
		Dr Retained earnings $50,000; Cr Accumulated impairment $50,000

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ekkarill92 answered 2 years ago

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