At the end of 2017, Alpha Company has a goodwill asset of $450,000, which exclusively relates to the acquisition of Beta Company in 2010. Beta Company is treated as a reporting unit under U.S. GAAP and must be tested annually for goodwill impairment. At year-end on December 31, 2017, management estimates that for Beta Company, the fair value of total assets (excluding goodwill) is $1,280,000 and the fair value of liabilities is $700,000. The fair market value of Beta Company is $990,000. The book value of Beta Companys net assets is $1,010,000.

a.What is the amount of goodwill impairment loss that Alpha should recognize according to U.S. GAAP(i.e., under ASU 2017-05, which simplified goodwill impairment to a single step process)?

b.What is the amount of goodwill impairment loss that Alpha should recognize according to IFRS? Assume Beta can be treated as a CGU, its selling costs are immaterial, and its value in use is $1,000,000.