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Company A has overstated the goodwill of its acquisition of Company B in 2018. The price of acquisition was 257. Company A estimated fair value
Company A has overstated the goodwill of its acquisition of Company B in 2018. The price of acquisition was 257. Company A estimated fair value of net assets to be 103. In 2019, you as an analyst want to make an accounting adjustment to the recorded goodwill by impairing 50% of it based on newly acquired information. With what amount will the net profit/loss (after tax) item on the income statement 2019 decrease based on this adjustment? Consider that the tax rate is 20%. Give your answer in absolute terms (not with minus sign).
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