Goodwill entry

[KAYSER]

Question:
When a company is sold or dissolved, and there is a Goodwill balance remaining on balance sheet,
What happens to it?
What is the right entry?

Thank you

 

[Dave In Capital]

Intangibles—Goodwill and Other (Topic 350)

I'm guessing the JEs would look like this:

Dr Cash
Dr Loss
Cr Assets
Cr Goodwill

 

[KAYSER]

View attachment 920
Intangibles—Goodwill and Other (Topic 350)

I'm guessing the JEs would look like this:

Dr Cash
Dr Loss
Cr Assets
Cr Goodwill

Thank you so much
that helps a lot

 

[BIG E]

When reporting this on the entity's tax return in the year of the transaction, you need to include
Form 8594 that breaks down the sale by asset class.