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Assume that ayisiyiniwiwinak Corp. paid $24 million to purchase 10-Trees Inc. Below is a summary of the balance sheet of 10-Trees Inc. at the time
Assume that ayisiyiniwiwinak Corp. paid $24 million to purchase 10-Trees Inc. Below is a summary of the balance sheet of 10-Trees Inc. at the time of the ayisiyiniwiwinak Corp. acquisition (amounts are given in million $). 10-Tree Inc.'s non- current assets had a fair value of only $32 at that time. 14 34 48 10 Assets Current assets Non-current assets Total assets Liabilities Current liabilities Non-current liabilities Total liabilities Shareholders' equity. Common shares Retained earnings Total shareholders' equity Total liabilities and shareholders' equity 24 34 8 6 14 48 9 Retained earnings 6 Total shareholders' equity 14 Total liabilities and shareholders' equity 48 Blank #1: What is the goodwill resulting from this transaction? Enter your response as a plain number (no $-signs or decimals). Blank #2: Assume that after a year, ayisiyiniwiwinak Corp. recognized a goodwill impairment loss of $1 million. On which financial statement is the impairment loss recorded? (Hint: This relates to the debit account of the journal record of the impairment loss recognition) Blank # 1 Blank # 2
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