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1. Topic: Goodwill impairment loss: U.S. GAAP LO 3 Goodwill of $6,400,000 is recognized on an acquisition. Following U.S. GAAP, the goodwill is allocated to
1. Topic: Goodwill impairment loss: U.S. GAAP LO 3 Goodwill of $6,400,000 is recognized on an acquisition. Following U.S. GAAP, the goodwill is allocated to the following reporting segments: Europe: $3,840,000 Asia: $2,560,000 At the end of the year, management determines that it is more likely than not that each segment's fair value is less than its fair value. The following information is then gathered on the segments: Fair Value Book Value Europe $35,200,000 $30,080,000 Asia 17,280,000 17,920,000 The goodwill impairment loss for the year, following U.S. GAAP, is: a. $ 0 b. $ 640,000 c. $5,760,000 d. $2,560,000
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