Exercise 11-33 (Static) Goodwill valuation and impairment; Chapters 10 and 11 [LO11-8] On May 28, 2021, 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, 2021. Management has provided the following information: Fair value of Harman, Inc. Fair value of Harman's net assets (excluding goodwill) 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 2021, if any. 3. If an impairment loss is required, prepare the journal entry to record the loss. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Req 1 and 2 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 2021, if any. (Negative amounts should be indicated by a minus sign. Enter your answers in millions (1.e., 10,000,000 should be entered as 10)). Goodwill $ 58 million Goodwill impairment loss 28 million Ke 1nd Req 3> Exercise 11-33 (Static) Goodwill valuation and impairment; Chapters 10 and 11 (LO11-8] On May 28, 2021, 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 weas $150 million. Pesky performed a goodwill impairment test at the end of its fiscal year ended December 31, 2021. Management has provided the following information: $400 million 370 million Fair value of Harman, Inc Fair value of Harman's net assets (excluding goodwill) Book value of Harman's net assets (including goodwill) 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 2021, if any. 3. If an impairment loss is required, prepare the journal entry to record the loss. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Req 1 and 2 Red-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 field. Enter your answers in millions (1.e., 10,000,000 should be entered as 10)). No Event General Journal Debit Credit Loss on Impairment of Goodwill 1 28 Goodwill 28 Req 1 and 2 Req3
