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3. At the start of the current year, KBB Corp purchased 100% of Milo Inc. for $140 million. At the time of purchase, the book
3. At the start of the current year, KBB Corp purchased 100% of Milo Inc. for $140 million. At the time of purchase, the book value of Milo's identifiable net assets was 580 million. The fair market value of Milo's identifiable net assets was $25 million in excess of their book value. What is the amount of goodwill KBB will record as a result of the acquisition? [1 point) 4. Prior to its 20x2 impairment test, Evergreen Corporation has 595 million of goodwill on its books from the 20x1 acquisition of Nova Motors. At the end of its 20x2 fiscal year, management has provided the following information for its annual goodwill impairment test (s in millions): Fair value of Nova Fair value of Nova's net assets (excluding goodwill) Book value of Nova's net assets (including goodwill) Assume that Nova is considered a reporting unit for U.S. GAAP and a cash-generating unit for a. What is the amount of goodwill impairment loss that Evergreen should recognize according to U.S. GAAP? (1 point) $860 $800 5900 IFRS b. What is the amount of goodwill impairment loss that Evergreen should recognize according to IFRS? Assume the fair value less costs to sell is $850 million and the value in use is $890 million. (1 point)
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