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In 2005, Anthara Inc. acquired Sathya Inc. for $1,200 million when the fair value of net assets (assets minus liabilities) of Sathya was $955 million.
In 2005, Anthara Inc. acquired Sathya Inc. for $1,200 million when the fair value of net assets (assets minus liabilities) of Sathya was $955 million. At the end of 2006, the net assets including goodwill, from Antharas acquisition of Sathya had a book value of $720 million. At this date the fair value of Sathya was assessed to be $700 million, while the fair value of Sathya excluding goodwill was assessed to be $550 million. Compute the amount of impairment loss that Anthara should record for goodwill at the end of 2006.
US GAAP.
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