Goodwill impairment loss for 2016, following IFRS, is

a.  \($600,000  \)

b.  \($2,200,000\)

c.  \($5,600,000 \)

d. \($6,000,000 \)

A company reports the following intangibles at December 31, 2016, prior to impairment testing:

The customer lists have a limited life, and amortization expense has already been properly recorded. The brand names have indefinite lives. The goodwill is allocated to Divisions 1 and 2 for both U.S. GAAP and IFRS.
Assume the company bypasses the Step 0 qualitative assessment for both the brand names and the goodwill.
On December 31, 2016, the following information is available:

Transcribed Image Text:

Customer lists Brand names Goodwill... Book value $1,500,000 5,200,000. 8,000,000