WebHelper Inc. acquired 100% of the outstanding stock of Silicon Chips Corporation (SCC) for $46.1 million, of which $17.2 million was allocated to goodwill. At the end of the current fiscal year, an impairment test revealed the following: fair value of SCC, $42.2 million; book value of SCC’s net assets (including goodwill), $45.3 million. What amount of impairment loss should WebHelper recognize

Principles of Accounting Volume 1
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Chapter11: Long-term Assets
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WebHelper Inc. acquired 100% of the outstanding stock of Silicon Chips Corporation (SCC) for $46.1 million, of which $17.2 million was allocated to goodwill. At the end of the current fiscal year, an impairment test revealed the following: fair value of SCC, $42.2 million; book value of SCC’s net assets (including goodwill), $45.3 million.

What amount of impairment loss should WebHelper recognize?

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