n 2019, Alliant Corporation acquired Centerpoint Inc. for $300 million, of which $50 million was allocated to goodwill. At the end of 2021, management has provided the following information for a required goodwill impairment test: Fair value of Centerpoint Inc.$220million Book value of Centerpoint’s net assets (excluding goodwill) 200million Book value of Centerpoint’s net assets (including goodwill) 250million Determine the amount of the impairment loss
n 2019, Alliant Corporation acquired Centerpoint Inc. for $300 million, of which $50 million was allocated to goodwill. At the end of 2021, management has provided the following information for a required goodwill impairment test: Fair value of Centerpoint Inc.$220million Book value of Centerpoint’s net assets (excluding goodwill) 200million Book value of Centerpoint’s net assets (including goodwill) 250million Determine the amount of the impairment loss
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 2019, Alliant Corporation acquired Centerpoint Inc. for $300 million, of which $50 million was allocated to
Fair value of Centerpoint Inc.$220million
Book value of Centerpoint’s net assets (excluding goodwill) 200million
Book value of Centerpoint’s net assets (including goodwill) 250million
Determine the amount of the impairment loss
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