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Exercise 11-32 Goodwill valuation and impairment, Chapters 10 and 11 [LO11-8] On May 28, 2018, Pesky Corporation acquired all of the outstanding common stock of

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Exercise 11-32 Goodwill valuation and impairment, Chapters 10 and 11 [LO11-8] On May 28, 2018, Pesky Corporation acquired all of the outstanding common stock of Harman, Inc., for $420 million. The fair value of Harman's identifiable tangible and intangible assets totaled $512 million, and the fair value of liabilities assumed by Pesky was $150 million. Pesky performed a goodwill Impairment test at the end of its fiscal year ended December 31, 2018. Management has provided the following information: Pair value of Harman, Inc. Fair value of Harman's net assets (excluding goodwil1) Book value of Harman's net assets (including goodwill) $400 million 370 million 410 million Required: 1. Determine the amount of goodwill that resulted from the Harman acquisition. 2. Determine the amount of goodwill impairment loss that Pesky should recognize at the end of 2018, if any 3. If an impairment loss is required, prepare the journal entry to record the loss. Complete this question by entering your answers in the tabs below. Req 1 and2 Req 3 Determine the amount of goodwill that resulted from the Harman acquisition and the amount of goodwill impairment loss that Pesky should recognize at the end of 2018, if any, (Enter your answers in millions (Le10,000,000 should be entered as ion Goodwill milion Goodwill impairment loss milion Req3 > Req 1 and 2 Req 3 If an impairment loss is required, prepare the journal entry to record the loss. (If no entry is required for a transaction/event, select "No journal entry required" In the first account fleld. Enter your answers in millions (l.., 10,000,000 should be entered as 10)) View transaction list Journal entry worksheet Record the impairment loss. Note: Enter debits before credits. Debit Credit Event General Journal View general journal Clear entry Record entry Req 1 and 2 Prev 1 of 5 Next >

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