On January 1, 2019, ABC Co. acquired 80% interest in XYZ, Inc. by issuing 5,000...
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On January 1, 2019, ABC Co. acquired 80% interest in XYZ, Inc. by issuing 5,000 shares with fair value of 15 per share. On this date, XYZ's total equity was 74,000. The investment in subsidiary is measured at cost. XYZ's assets and liabilities approximate their fair values on January 1, 2019 except for the following: XYZ, Inc. Carrying amounts Fair values Fair value adjustments Inventory 23,000 31,000 8,000 Equipment (4 yrs. remaining life) 40,000 48,000 8,000 Total 63,000 79,000 16,000 There were no intercompany transactions during 2019. However, it was determined that goodwill is impaired by 1,000. How much is the goodwill attributable to NCI as of December 31, 2019?
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