In 2016, Alliant Corporation acquired Centerpoint, Inc. for $300 million, of which $50 million was allocated to

Question:

In 2016, Alliant acquired Centerpoint, Inc. for $300 million, of which $50 million was allocated to . At the end of 2018, management has provided the following information for a required impairment test:
Fair value of Centerpoint, Inc. ................................................. $220 million
Fair value of Centerpoint's net assets (excluding ) ............... 200 million
Book value of Centerpoint's net assets (including ) .............. 250 million
Required:
1. Determine the amount of the impairment loss.
2. Repeat requirement 1 assuming that the fair value of Centerpoint is $270 million.
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