Question
In 2016, Alliant Corporation acquired Centerpoint Inc. for $548 million, of which $98 million was allocated to goodwill. At the end of 2018, management has
In 2016, Alliant Corporation acquired Centerpoint Inc. for $548 million, of which $98 million was allocated to goodwill. At the end of 2018, management has provided the following information for a required goodwill impairment test: Fair value of Centerpoint, Inc. $ 402 million Fair value of Centerpoints net assets (excluding goodwill) 352 million Book value of Centerpoints net assets (including goodwill) 450 million
Required: 1. Determine the amount of the impairment loss.
2. Determine the amount of the impairment loss assuming that the fair value of Centerpoint is $500 million.
(For all requirements, Enter your answer in millions (i.e., 10,000,000 should be entered as 10)).
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Fundamentals of Financial Management
Authors: Eugene F. Brigham, Joel F. Houston
12th edition
978-0324597714, 324597711, 324597703, 978-8131518571, 8131518574, 978-0324597707
