ACCT 414-In 2015, Giant Corp. purchased 100% of the assets
In 2015, Giant Corp. purchased 100% of the assets and liabilities of Mini Ltd.for a cash price of $360,000: Book Value Fair Market ValueAccounts Receivable (net) $100,000 $100,000Inventory 180,000 160,000PP&E (net) 700,000 720,000Land 20,000 60,000Liabilities 700,000 700,000Required1. Compute the amount of goodwill that will be recorded for the purchase of Mini Ltd2. Give the journal entry for Giant to record the purchase3. Assume Mini becomes a cash generating unit of Giant Corp. after the acquisition, and Giant Corp. is a public company that uses IFRS. In 2016, the fair value of Mini is estimated at $350,000; the value in use is $320,000; the costs to sell would be $5,000. Determine whether there is any impairment inMini, and prepare any journal entry, if necessary
