Required information (The following information applies to the questions displayed below] In Year 1, Company A acquired Company B for $380 million, of which $60 million was allocated to goodwill. At the Year 3. management has provided the following information for a required goodwill impairment test Fair value of Company 8 Book value of Company B's net assets (excluding goodwill) Book value of Company B's net assets (including goodwill) $294 million 260 million 320 million 2. Determine the amount of goodwill reported in the year-end Year 3 balance sheet. 3. Determine the amount of the impairment loss assuming that the fair value of Company B is $354 million Note: For all requirements, enter your answer in millions (i.e., 10,000,000 should be entered as 10).

Required information (The following information applies to the questions displayed below] In Year 1, Company A acquired Company B for $380 million, of which $60 million was allocated to goodwill. At the Year 3. management has provided the following information for a required goodwill impairment test Fair value of Company 8 Book value of Company B's net assets (excluding goodwill) Book value of Company B's net assets (including goodwill) $294 million 260 million 320 million 2. Determine the amount of goodwill reported in the year-end Year 3 balance sheet. 3. Determine the amount of the impairment loss assuming that the fair value of Company B is $354 million Note: For all requirements, enter your answer in millions (i.e., 10,000,000 should be entered as 10).

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter12: Intangibles

Section: Chapter Questions

Problem 10RE

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