Trueblood Case No. 2: Case 04-9 Healthcare Depot
Assignment: Case No. 2
ACTG 4650, Phillips
Due date: June 28, 2012
Trueblood Case 04-9 Healthcare Depot, Part 3 only. You will find the case at the following website. Just pagedown to find case 04-9.
http://www.deloitte.com/us/truebloodcases
Since we are not doing parts 1 and 2, assume that DDC Distribution and HC Holding are aggregated to be one reporting unit.
Type your answers using Microsoft Word.
“Goodwill is defined as an asset acquired in a business combination that has future economic benefit and is result of acquired assets that could not be separately recognized and identified individually. Goodwill that is computed in a business combination using the provisions of ASC business combination is not …show more content…
If the carrying value of the unit is less than its fair value, no impairment exists and the second step of the impairment test is not required. However, if fair value of the reporting unit is less than the carrying amount, the second step of the impairment test is must be performed to determine the amount of the impairment loss. Regardless of Healthcare Depot, only two divisions of DDC Distribution Corp. and HC Holding which have excess of 5.6 millions on carrying value of its net assets and goodwill based on above table. Consequently, Healthcare Depot will have to continue in step two for comparing the implied fair value with carrying value of goodwill to determine the impairment loss.
Table # 2 | | DDC Distribution Corp. | HC Holding | | | FV of reporting units | | | | | 311,000,000 | FV of net assets: | | | | | | FV - tangible net assets | | 53,000,000 | 24,350,000 | 77,350,000 | | FV - recognized intangibles | | 75,000,000 | 45,000,000 | 120,000,000 | | FV - unrecognized intangibles: | | | | | | Patent | | 75,000,000 | | 75,000,000 | | Customer list | | 15,500,000 | 5,000,000 | 20,500,000 | | In-Process R&D | | 12,000,000 | | 12,000,000 | -304,850,000 | Implied FV goodwill | | | | | 6,150,000 | Carrying value goodwill | | 10,500,000 | 2,150,000 | | 12,650,000 | Impairment loss | | | | | -6,500,000 |
ACTG 4650, Phillips
Due date: June 28, 2012
Trueblood Case 04-9 Healthcare Depot, Part 3 only. You will find the case at the following website. Just pagedown to find case 04-9.
http://www.deloitte.com/us/truebloodcases
Since we are not doing parts 1 and 2, assume that DDC Distribution and HC Holding are aggregated to be one reporting unit.
Type your answers using Microsoft Word.
“Goodwill is defined as an asset acquired in a business combination that has future economic benefit and is result of acquired assets that could not be separately recognized and identified individually. Goodwill that is computed in a business combination using the provisions of ASC business combination is not …show more content…
If the carrying value of the unit is less than its fair value, no impairment exists and the second step of the impairment test is not required. However, if fair value of the reporting unit is less than the carrying amount, the second step of the impairment test is must be performed to determine the amount of the impairment loss. Regardless of Healthcare Depot, only two divisions of DDC Distribution Corp. and HC Holding which have excess of 5.6 millions on carrying value of its net assets and goodwill based on above table. Consequently, Healthcare Depot will have to continue in step two for comparing the implied fair value with carrying value of goodwill to determine the impairment loss.
Table # 2 | | DDC Distribution Corp. | HC Holding | | | FV of reporting units | | | | | 311,000,000 | FV of net assets: | | | | | | FV - tangible net assets | | 53,000,000 | 24,350,000 | 77,350,000 | | FV - recognized intangibles | | 75,000,000 | 45,000,000 | 120,000,000 | | FV - unrecognized intangibles: | | | | | | Patent | | 75,000,000 | | 75,000,000 | | Customer list | | 15,500,000 | 5,000,000 | 20,500,000 | | In-Process R&D | | 12,000,000 | | 12,000,000 | -304,850,000 | Implied FV goodwill | | | | | 6,150,000 | Carrying value goodwill | | 10,500,000 | 2,150,000 | | 12,650,000 | Impairment loss | | | | | -6,500,000 |