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In 2014, Quasar Ltd. acquired all of the common stock of Penlight Laser for $125.80 million. The fair value of Penlight's identifiable tangible and intangible
In 2014, Quasar Ltd. acquired all of the common stock of Penlight Laser for $125.80 million. The fair value of Penlight's identifiable tangible and intangible assets totaled $207.70 million, and the fair value of liabilities assumed by Quasar was $96.80 million. Quasar performed a required goodwill impairment test at the end of its fiscal year ended December 31, 2016. Management has provided the following information: Fair value of Penlight Fair value of Penlight's net assets (excluding goodwill 107.90 million Book value of Penlight's net assets (including goodwill) 125.90 million $117.70 million Required: 1. Determine the amount of goodwill that resulted from the Penlight acquisition. (Enter your answers in millions rounded to 2 decimal places (e, 5,500,000 should be entered as 5.50).) 14.90 million 2. Determine the amount of goodwill impairment loss that Quasar should recognize at the end of 2016, i any. (Enter your answers in millions rounded to 2 decimal places (e, 5,500,000 should be entered as 5.50).) 8.20 milion 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 rounded to 2 decimal places (i.e, 5,500,000 should be entered as 5.50-) View transaction list View journal entry worksheet No Transaction General Journal Debit Loss on impairment of goodwll 0 F1 F2 F3 FS F7
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