How do they come up with the ratio for good will impairment loss? I remember my teacher saying that you don't use the ownership percentage but you use something else.

$ 41,750,000 14.750.000 56,500,000 Acquisition cost Fair value of noncontrolling interest Total fair value Book value of Sun City Revaluation: Identifiable intangibles Goodwill $ 5,000,000 7.500.000 12.500.000 $ 44.000.000 Allocation of goodwill between controlling and noncontrolling interest: Total goodwill Palm's goodwill: $41,750,000 -(70% x $12,500,000) Goodwill to noncontrolling interest $ 44,000,000 33.000.000 S 11,000,000 Goodwill is allocated in a 75:25 ratio. b. 2020 equity in net income and noncontrolling interest in net income: Total $10,000,000 Equity in NI $7,000,000 Noncontrolling Interest in NI $ 3,000,000 Sun City's reported net income Revaluation write-offs: Identifiable intangibles $7,500,000/5 Goodwill impairment loss (1,500,000) (2.000.000) $ 6.500.000 (1,050,000) (1.500.000 S 4.450.000 (450,000) (500.000 S 2.050.000 $ 41,750,000 14,750,000 56,500,000 Question 3 Not complete Marked out of 15.00 Equity in Net Income and Noncontrolling Interest in Net Income Palm Resorts acquired its 70 percent interest in Sun City on January 1, 2017, for $41,750,000. The fair value of the 30 percent noncontrolling interest at the date of acquisition was $14,750,000. Sun City's date-of-acquisition reported net assets of $5,000,000 were carried at amounts approximating fair value, but it had unrecorded identifiable intangibles, capitalizable per ASC Topic 805, valued at $7,500,000. These intangibles are determined to have limited lives, amortized on a straight-line basis over five years. It is now December 31, 2020, and Sun City reports net income of $10,000,000. Required Acquisition cost Fair value of noncontrolling interest Total fair value Book value of Sun City Revaluation: Identifiable intangibles Goodwill $ 5,000,000 7,500,000 12,500,000 $_44,000,000 Allocation of goodwill between controlling and noncontrolling interest: Total goodwill Palm's goodwill: $41,750,000 -(70% x $12,500,000) Goodwill to noncontrolling interest S 44,000,000 33,000,000 S 11.000.000 a. Calculate the amount of goodwill originally reported for this acquisition, and its allocation to the controlling and noncontrolling interests. Enter answers in thousands (example, $41,750,000 equals $41,750 in thousands). Goodwill is allocated in a 75:25 ratio. b. 2020 equity in net income and noncontrolling interest in net income: Total goodwill Allocation to controlling interests $ Allocation to noncontrolling interests $ 0 Total $10,000,000 Equity in NI $ 7,000,000 Noncontrolling Interest in NI $ 3,000,000 Sun City's reported net income Revaluation write-offs: Identifiable intangibles $7,500,000/5 Goodwill impairment loss b. Calculate equity in net income and the noncontrolling interest in net income for 2020, assuming goodwill from this acquisition is impaired by $2,000,000 in 2020. Enter answers in thousands (example, $3,000,000 equals $3,000 in thousands). Use negative signs with answers that reduce net income amounts. (1,500,000) (2.000.000) $ 6,500,000 (1,050,000) (1.500.000) $4,450,000 (450,000) (500,000) $ 2,050,000 Correct Marks for this submission: 15.00/15.00. Total Noncontrolling Equity in NI lity in NI Interest in NI $ 0 $ 0 1 Sun City's reported net income $ Revaluation write-offs: Identifiable intangibles Goodwill impairment loss eBook Question 4 Correct Mark 54.00 out of 54.00 P Flag question Edit question 0 $ 0 $ Goodwill, Equity Method, Eliminating Entries, First Year $ 41,750,000 14,750,000 56,500,000 Question 3 Not complete Marked out of 15.00 Equity in Net Income and Noncontrolling Interest in Net Income Palm Resorts acquired its 70 percent interest in Sun City on January 1, 2017, for $41,750,000. The fair value of the 30 percent noncontrolling interest at the date of acquisition was $14,750,000. Sun City's date-of-acquisition reported net assets of $5,000,000 were carried at amounts approximating fair value, but it had unrecorded identifiable intangibles, capitalizable per ASC Topic 805, valued at $7,500,000. These intangibles are determined to have limited lives, amortized on a straight-line basis over five years. It is now December 31, 2020, and Sun City reports net income of $10,000,000. Required Acquisition cost Fair value of noncontrolling interest Total fair value Book value of Sun City Revaluation: Identifiable intangibles Goodwill $ 5,000,000 7,500,000 12,500,000 $_44,000,000 Allocation of goodwill between controlling and noncontrolling interest: Total goodwill Palm's goodwill: $41,750,000 -(70% x $12,500,000) Goodwill to noncontrolling interest S 44,000,000 33,000,000 S 11.000.000 a. Calculate the amount of goodwill originally reported for this acquisition, and its allocation to the controlling and noncontrolling interests. Enter answers in thousands (example, $41,750,000 equals $41,750 in thousands). Goodwill is allocated in a 75:25 ratio. b. 2020 equity in net income and noncontrolling interest in net income: Total goodwill Allocation to controlling interests $ Allocation to noncontrolling interests $ 0 Total $10,000,000 Equity in NI $ 7,000,000 Noncontrolling Interest in NI $ 3,000,000 Sun City's reported net income Revaluation write-offs: Identifiable intangibles $7,500,000/5 Goodwill impairment loss b. Calculate equity in net income and the noncontrolling interest in net income for 2020, assuming goodwill from this acquisition is impaired by $2,000,000 in 2020. Enter answers in thousands (example, $3,000,000 equals $3,000 in thousands). Use negative signs with answers that reduce net income amounts. (1,500,000) (2.000.000) $ 6,500,000 (1,050,000) (1.500.000) $4,450,000 (450,000) (500,000) $ 2,050,000 Correct Marks for this submission: 15.00/15.00. Total Noncontrolling Equity in NI lity in NI Interest in NI $ 0 $ 0 1 Sun City's reported net income $ Revaluation write-offs: Identifiable intangibles Goodwill impairment loss eBook Question 4 Correct Mark 54.00 out of 54.00 P Flag question Edit question 0 $ 0 $ Goodwill, Equity Method, Eliminating Entries, First Year $ 41,750,000 14.750.000 56,500,000 Acquisition cost Fair value of noncontrolling interest Total fair value Book value of Sun City Revaluation: Identifiable intangibles Goodwill $ 5,000,000 7.500.000 12.500.000 $ 44.000.000 Allocation of goodwill between controlling and noncontrolling interest: Total goodwill Palm's goodwill: $41,750,000 -(70% x $12,500,000) Goodwill to noncontrolling interest $ 44,000,000 33.000.000 S 11,000,000 Goodwill is allocated in a 75:25 ratio. b. 2020 equity in net income and noncontrolling interest in net income: Total $10,000,000 Equity in NI $7,000,000 Noncontrolling Interest in NI $ 3,000,000 Sun City's reported net income Revaluation write-offs: Identifiable intangibles $7,500,000/5 Goodwill impairment loss (1,500,000) (2.000.000) $ 6.500.000 (1,050,000) (1.500.000 S 4.450.000 (450,000) (500.000 S 2.050.000 $ 41,750,000 14,750,000 56,500,000 Question 3 Not complete Marked out of 15.00 Equity in Net Income and Noncontrolling Interest in Net Income Palm Resorts acquired its 70 percent interest in Sun City on January 1, 2017, for $41,750,000. The fair value of the 30 percent noncontrolling interest at the date of acquisition was $14,750,000. Sun City's date-of-acquisition reported net assets of $5,000,000 were carried at amounts approximating fair value, but it had unrecorded identifiable intangibles, capitalizable per ASC Topic 805, valued at $7,500,000. These intangibles are determined to have limited lives, amortized on a straight-line basis over five years. It is now December 31, 2020, and Sun City reports net income of $10,000,000. Required Acquisition cost Fair value of noncontrolling interest Total fair value Book value of Sun City Revaluation: Identifiable intangibles Goodwill $ 5,000,000 7,500,000 12,500,000 $_44,000,000 Allocation of goodwill between controlling and noncontrolling interest: Total goodwill Palm's goodwill: $41,750,000 -(70% x $12,500,000) Goodwill to noncontrolling interest S 44,000,000 33,000,000 S 11.000.000 a. Calculate the amount of goodwill originally reported for this acquisition, and its allocation to the controlling and noncontrolling interests. Enter answers in thousands (example, $41,750,000 equals $41,750 in thousands). Goodwill is allocated in a 75:25 ratio. b. 2020 equity in net income and noncontrolling interest in net income: Total goodwill Allocation to controlling interests $ Allocation to noncontrolling interests $ 0 Total $10,000,000 Equity in NI $ 7,000,000 Noncontrolling Interest in NI $ 3,000,000 Sun City's reported net income Revaluation write-offs: Identifiable intangibles $7,500,000/5 Goodwill impairment loss b. Calculate equity in net income and the noncontrolling interest in net income for 2020, assuming goodwill from this acquisition is impaired by $2,000,000 in 2020. Enter answers in thousands (example, $3,000,000 equals $3,000 in thousands). Use negative signs with answers that reduce net income amounts. (1,500,000) (2.000.000) $ 6,500,000 (1,050,000) (1.500.000) $4,450,000 (450,000) (500,000) $ 2,050,000 Correct Marks for this submission: 15.00/15.00. Total Noncontrolling Equity in NI lity in NI Interest in NI $ 0 $ 0 1 Sun City's reported net income $ Revaluation write-offs: Identifiable intangibles Goodwill impairment loss eBook Question 4 Correct Mark 54.00 out of 54.00 P Flag question Edit question 0 $ 0 $ Goodwill, Equity Method, Eliminating Entries, First Year $ 41,750,000 14,750,000 56,500,000 Question 3 Not complete Marked out of 15.00 Equity in Net Income and Noncontrolling Interest in Net Income Palm Resorts acquired its 70 percent interest in Sun City on January 1, 2017, for $41,750,000. The fair value of the 30 percent noncontrolling interest at the date of acquisition was $14,750,000. Sun City's date-of-acquisition reported net assets of $5,000,000 were carried at amounts approximating fair value, but it had unrecorded identifiable intangibles, capitalizable per ASC Topic 805, valued at $7,500,000. These intangibles are determined to have limited lives, amortized on a straight-line basis over five years. It is now December 31, 2020, and Sun City reports net income of $10,000,000. Required Acquisition cost Fair value of noncontrolling interest Total fair value Book value of Sun City Revaluation: Identifiable intangibles Goodwill $ 5,000,000 7,500,000 12,500,000 $_44,000,000 Allocation of goodwill between controlling and noncontrolling interest: Total goodwill Palm's goodwill: $41,750,000 -(70% x $12,500,000) Goodwill to noncontrolling interest S 44,000,000 33,000,000 S 11.000.000 a. Calculate the amount of goodwill originally reported for this acquisition, and its allocation to the controlling and noncontrolling interests. Enter answers in thousands (example, $41,750,000 equals $41,750 in thousands). Goodwill is allocated in a 75:25 ratio. b. 2020 equity in net income and noncontrolling interest in net income: Total goodwill Allocation to controlling interests $ Allocation to noncontrolling interests $ 0 Total $10,000,000 Equity in NI $ 7,000,000 Noncontrolling Interest in NI $ 3,000,000 Sun City's reported net income Revaluation write-offs: Identifiable intangibles $7,500,000/5 Goodwill impairment loss b. Calculate equity in net income and the noncontrolling interest in net income for 2020, assuming goodwill from this acquisition is impaired by $2,000,000 in 2020. Enter answers in thousands (example, $3,000,000 equals $3,000 in thousands). Use negative signs with answers that reduce net income amounts. (1,500,000) (2.000.000) $ 6,500,000 (1,050,000) (1.500.000) $4,450,000 (450,000) (500,000) $ 2,050,000 Correct Marks for this submission: 15.00/15.00. Total Noncontrolling Equity in NI lity in NI Interest in NI $ 0 $ 0 1 Sun City's reported net income $ Revaluation write-offs: Identifiable intangibles Goodwill impairment loss eBook Question 4 Correct Mark 54.00 out of 54.00 P Flag question Edit question 0 $ 0 $ Goodwill, Equity Method, Eliminating Entries, First Year