ACCOUNTING HW HELP:

Identifiable Intangibles and Goodwill, U.S. GAAP International Foods, a U.S. company, acquired two companles in 2016. As a result, Its consolidated financlal statements include the following acquired Intanglbles: Intangible Asset Customer relationships Favorable leaseholds Brand names Goodwill Date of Acquisition Fair Value at Date of Acquisition Useful Life $4,000,000 4years 8,000,000 5years 18,000,000 Indefinite 500,000,000 Indefinite January 1, 2016 June 30, 2016 June 30, 2016 January 1, 2016 Goodwill was assigned to the following reporting units: Asia South America 150,000,000 Europe Total $100,000,000 250,000,000 $500,000,000 It is now December 31, 2017, the end of International Faods' accounting year. No impairment losses were reported on any intangibles in 2016. Assume that International Foods bypasses the qualitative option for impairment testing of goodwill and indeflite life intangibles. Intangible Asset Customer relationships Favorable leaseholds Brand names Sum of Future Expected Undiscounted Cash Flows Sum of Future Expected Discounted Cash Flows $900,000 4,400,000 7,000,000 $1,200,000 6,000,000 14,000,000 Reporting Unit Unit Carrying Value Unit Fair Value Fair Value of Identifiable Net Assets Asia South America Europe $300,000,000 $400,000,000 200,000,000 350,000,000 500,000,000 500,000,000 $375,000,000 280,000,000 385,000,000 Required Compute 2017 amortization expense and impairment losses on the above intangibles, following U.S. GAAP. Summary: Amortization expense - identifiable intangibles 2,600,0 Impairment losses -identifiable intangibles 15,900. Goodwill impairment loss 115,00 x Total $281,70EX