In 2023, Hanson Incorporated had acquired Peridot Corporation and recorded goodwill of $335 million as a result. The net assets (including goodwill from Hanson's acquisition of Peridot Corporation had a 2024 year-end book value of $670 million. Hanson assessed the fair value of Peridot reporting unit at this date to be $790 million, while the fair value of all of Peridot's identifiable tangible and intangible assets (excluding goodwill) was $721 million. The amount of the impairment loss that Hanson would report for goodwill at the end of 2024 is: Multiple Choice $69 million $0. $120 million. $266 million.

In 2023, Hanson Incorporated had acquired Peridot Corporation and recorded goodwill of $335 million as a result. The net assets (including goodwill from Hanson's acquisition of Peridot Corporation had a 2024 year-end book value of $670 million. Hanson assessed the fair value of Peridot reporting unit at this date to be $790 million, while the fair value of all of Peridot's identifiable tangible and intangible assets (excluding goodwill) was $721 million. The amount of the impairment loss that Hanson would report for goodwill at the end of 2024 is: Multiple Choice $69 million $0. $120 million. $266 million.

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter12: Auditing Long-lived Assets And Merger And Acquisition Activity

Section: Chapter Questions

Problem 37RQSC

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In 2023, Antle Incorporated had acquired Demski Company and recorded goodwill of $245 million as a result. The net assets (including goodwill) from Antle's acquisition of Demski Company had a 2024 year-end book value of $580 million. Antle assessed the fair value of Demski reporting unit at this date to be $700 million, while the fair value of all of Demski's identifiable tangible and intangible assets (excluding goodwill) was $550 million. The amount of the impairment loss that Antle would report for goodwill at the end of 2024 is: Multiple Choice $0. $120 million. $150 million. $95 million.
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