Question
ABC Holdings Inc. acquired XYZ Company for $1,000,000. At the end of the year, the fair value of XYZ Company's net assets is $800,000, and
ABC Holdings Inc. acquired XYZ Company for $1,000,000. At the end of the year, the fair value of XYZ Company's net assets is $800,000, and the carrying amount of goodwill is $200,000. Determine whether ABC Holdings should recognize an impairment loss on goodwill and calculate the amount of impairment, if any.
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Intermediate accounting
Authors: J. David Spiceland, James Sepe, Mark Nelson
7th edition
978-0077614041, 9780077446475, 77614046, 007744647X, 77647092, 978-0077647094
